I'm trying to prepare the journal entries and I'm having problems with 7b8
The city uses the following annual straight-line depreciation rates: buildings 2.5%; equipment 10% (equip. purchased during the year need not depreciated because it was not held for more than 6 months of the year) Apply these rates to the original cost of buildings and equipment as of December 31, 2013, assuming no residual or salvage value.
Value of buildings as of Dec. 31, 2013 = 1,650,000 equipment = credit of 1,340,400
Hi please find the attached... View the full answer