Reference no: EM132534610

Question - In 1993, Concord Company completed the construction of a building at a cost of $2,100,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $63,200 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $525,000. 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 $21,000.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Required - Compute the annual depreciation to be charged, beginning with 2022.