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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

The solution is... View the full answer

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

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