Chapter 9, Problem 9.21E

To determine

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

$\text{Depreciation cost = }\frac{\left(\text{Cost of the asset-residual value}\right)}{\text{Estimated useful life of the asset}}$

To journalize: the depreciation expense on the building for the year 15.

To determine

To journalize: the depreciation expense on the building for the year 16.