Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: Homework help

Bottom of Page

1 to 2 of 2

  1.  
    • CommentAuthorvictorlpz
    • CommentTimeAug 5th 2009
     
    An office building, which was purchased on January 1 for $322,000, has a residual value of $26,000 and an estimated useful life of 25 years. The Company uses straight-line depreciation.

    Note: Round off your answer the nearest whole number.

    Part A.
    The annual depreciation expense for the office building is

    $ . 11840

    Part B.
    The book value of the office building after year 6 is

    $ . 250960

    Part C.
    Assume at the beginning of year 7 the remaining useful life is 9 years and the new residual value is $16,000 . The new revised annual depreciation of the office building is

    $ .
    • CommentAuthorArcSine
    • CommentTimeAug 5th 2009
     
    Hint: Book Val at end of yr 6, less residual val, divided by remaining life, equals annual depreciation.

    (250,960 - 16,000) / 9 = ?

    After you compute the new annual depreciation, check to make sure that after 9 years of this depreciation, the book value will be reduced from its current amount of 250,960 to its residual val of 16,000.

1 to 2 of 2

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?