In 1998, Metlock Company completed the construction of a building at a cost of $2,200,000 and first occupied it in January 1999. It was estimated that the building will have a useful life of 40 years and a salvage value of $65,600 at the end of that time.Early in 2009, an addition to the building was constructed at a cost of $550,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $22,000.In 2027, it is determined that the probable life of the building and addition will extend to the end of 2058, or 20 years beyond the original estimate.### (a)Using the straight-line method, compute the annual depreciation that would have been charged from 1999 through 2008.Annual depreciation from 1999 through 2008: $ _________ / yr.

A depreciation per year under straight line depreciation is the depreciation expense which has been…

Answered: Using the straight-line method, compute…

Using the straight-line method, compute the annual depreciation that would have been charged from 1999 through 2008. Annual depreciation from 1999 through 2008 $ /yr.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In 1998, Metlock Company completed the construction of a building at a cost of $2,200,000 and first occupied it in January 1999. It was estimated that the building will have a useful life of 40 years and a salvage value of $65,600 at the end of that time.

Early in 2009, an addition to the building was constructed at a cost of $550,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $22,000.

In 2027, it is determined that the probable life of the building and addition will extend to the end of 2058, or 20 years beyond the original estimate.

### (a)

Using the straight-line method, compute the annual depreciation that would have been charged from 1999 through 2008.

Annual depreciation from 1999 through 2008: $ _________ / yr.

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