Reference no: EM131644855
Question - In 1990, Cheyenne Company completed the construction of a building at a cost of $2,160,000 and first occupied it in January 1991. It was estimated that the building will have a useful life of 40 years and a salvage value of $64,800 at the end of that time.
Early in 2001, an addition to the building was constructed at a cost of $540,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,600.
In 2019, it is determined that the probable life of the building and addition will extend to the end of 2050, or 20 years beyond the original estimate.
Compute the annual depreciation to be charged, beginning with 2019.
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: In 1990, Cheyenne Company completed the construction of a building at a cost of $2,160,000, Compute the annual depreciation to be charged, beginning with 2019
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