View the step-by-step solution to:


Alpha Construction acquired the following plant assets on January 5, 2009:


                                                 Cost               Residual Value         Useful Life

Office equipment                               $175,000        $15,000                      5 years

Building                                             $300,000        $20,000                      25 years

Alpha Construction uses the double declining balance method to depreciate the office equipment & the straight-line method to depreciate the building.


1. Calculate depreciation for 2009 & 2010 for each of the assets.

a. Office equipment

b. Building 

2. Assume the building was sold at the June 21 of 2010 for $210,000. Determine whether the company will realize any gain or loss from the sale. How would the sale be reported in the statement of cash flow?

Top Answer

1.) (a) Office equipment :- Depreciation 2009 = $70,000 Depreciation 2010 = $42,000 (b) Building :-... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question