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?
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?
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