Calculate the book value of the building

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Reference no: EM133015707

Straight-Line Depreciation

BlueSky, Inc., purchased a building for $600,000. Straight-line depreciation was used for each of the first two years using the following assumptions: 25-year estimated useful life, with a residual value of $100,000.

1. Calculate the annual depreciation for the first two years that BlueSky Inc owned the building.

2. Calculate the book value of the building at the end of the second year

Reference no: EM133015707

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