Question In 1990, Monty Company completed the construction of a building at a co

Question

Question In 1990, Monty Company completed the construction of a building at a cost of $2,060,000 and first occupied it in January 1991. It was estimated that the building will have a useful life of 40 years and a salvage value of $61,800 at the end of that time Early in 2001, an addition to the building was constructed at a cost of $515,000. 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 $20,600. In 2019, it is determined that the probable life of the building and addition will extend to the end of 2050, or 20 years beyond the original estimate. (a) Using the straight-line method, compute the annual depreciation that would have been charged from 1991 through 2000. Annual depreciation from 1991 through 2000s yr Attempts: O of 5 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Annual depreciation from 1991 through 2000 = (2060000-61800)/40= 49955

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