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Q1A building with a cost of $500,000, an estimated residual value of $50,000, and an estimated life of 20 years was depreciated by the straight-line...

Q1A building with a cost of $500,000, an estimated residual value of $50,000, and an estimated life of 20 years was depreciated by the straight-line method for 10 years. In the eleventh year, it was determined that the useful life should be extended by a further 10 years, and the residual value amended to $100 000. The yearly depreciation expense for the remainder of the asset's life will be:$8750


Suppose the equipment described in Question 1 above is to be depreciated by the reducing balance (at twice the straight-line rate) method. What is the amount of depreciation for the first full year?


$40,000

$85,000

$75,000

$80,000


Suppose the equipment described in Question 1 above is to be depreciated by the units-of-production method. What is the amount of depreciation for the first full year, during which the equipment was used for 3,300 hours?


$41,250

$46,750

$44,000

$40,000

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The correct answers are $45,000 depreciation in first year... View the full answer

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