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Question: Waterway Company constructed a building at a cost of $2,750,000 and occupied it beginning in January 1998. It was estimated at that time that its life would be 40 years, with no salvage value.
In January 2018, a new roof was installed at a cost of $375,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $200,000.
a. depreciation for the year 2018 (assume the cost of the old roof is removed) ______
b. depreciation for the year 2018 (assume the cost of the new roof is debited to accumulated depreciation-equipment_____
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