A,b, and C are correct i just need help with part D ---### Depreciation Calculation Example for Educational Purposes#### Background Information- **1993**: Windsor Company completed the construction of a building costing $2,160,000, with first occupancy in January 1994. The building was expected to have a useful life of 40 years, with a salvage value of $65,600.- **2004**: An addition was made to the building at a cost of $540,000. It was estimated that this addition, along with the remaining life of the building, would have an additional 30 years of use, with a salvage value of $21,600.- **2022**: It was determined that the building and the addition would now have an extended life until the end of 2053, surpassing the original estimate by 20 years.#### Calculation (a)**Task**:Using the straight-line method, calculate the annual depreciation that would have been incurred from 1994 through 2003.**Solution**:- **Annual Depreciation**: $52,360 per year.This calculation uses the straight-line method, which assumes the asset depreciates by the same amount each year.--- ### Depreciation Calculation Example**Problem (d):**The question addresses the computation of annual depreciation to be charged, beginning with the year 2022. The response requirement is to round the answer to 0 decimal places (e.g., 45,892).**Feedback:**- **Your answer is incorrect.****Required Calculation:**- **Annual depreciation expense—building:** $26,935**Note:** Ensure that calculations round to the nearest whole number as specified.Additional Resources:- *eTextbook and Media* for further reference.- *List of Accounts* for comprehensive financial management insights.

Depreciation is a reduction in value of asset due to wear and tear, technological advancement and other reason. Management choose depreciation method based on their own estimate of use of asset. In straight line basis depreciation is calculated in equal installment over a useful life. Depreciation = (Asset cost - Salvage value) / Useful life of asset(A) Question A is correct so annual depreciation is $52,360 per year (D) Now lets first calculate the book value of asset at the beginning of 2004 Book value = Asset cost - Depreciation = $2,160,000 - ($52,360 * 10 years) = $1,636,400 Now addition to building is $540,000 with additional salvage value of $21,600 so, New cost of building = $1,636,400 + $540,000 = $2,176,400 New salvage value = $65,600 + $21,600 = $87,200 So new depreciation per year is = ($2,176,400 - $87,200)/30 years = $69,640 Now lets calculate book value at the new event i.e. In the beginning of 2022. Book value = ($2,176,400 - ($69,640 * 18)) = $922,880 Now it is determine that usefulness asset increase by another 20 years so, New depreciation per year is = ($922,880 - $87,200)/(12 years + 20 years) = $26,115

Answered: Your answer is incorrect. Compute the…

Business

Accounting

Your answer is incorrect. Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.) Annual depreciation expense-building 24 26935

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume a world that meets all assumptions of the portfolio theory. In this world we solely trade in securities A and B like depicted in the graph below. Short selling is allowed. xA and XB indicate the proportions of security A and B within a portfolio respectively. P1, P2, P3 and P4 represent portfolios that can be created by trading (either long and/or short) in securhies A and B. P3 is the portfolio with the lowest risk; the risk of P3 is 0%. The risk of security A and B is measured by the standard deviation of the returns in the particular security and equals 20% for both. The correlation coefficient of the returns between A and B is -1. 40% P1 E(R) A 30% P2 20% P3 10% P4 ++ 30% 0% 10% 20% 40% O(R) Question: Indicate which statements are correct. Take into account that everything is possible, from all correct to all wrong.
1. What is a case and how to defining the Case and Creating Problem Statements? 2. What is Background of the Problem and Problem Statement?
2) Explain Prudence concept and provide example.
Your solution is wrong see the answers at bottom of the question
help
help please, the answers I put are not correct
hrl.3 answer must be in proper format or i will give down vote
This answer is incorrect. What's the correct one?
why did you not answer b?
Still need answers and details for B and C?
It says they answers are wrong from your example.