Determine the book value at the end of the twentieth year

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Problem - A warehouse with a cost of $500,000 has an estimated residual value of $120,000, has an estimated useful life of 40 years, and is depreciated by the straight-line method.

Required -

(a) Determine the amount of the annual depreciation.

(b) Determine the book value at the end of the twentieth year of use.

(c) Assuming that at the start of the twenty-first year the remaining life is estimated to be 25 years and the residual value is estimated to be $150,000, determine the depreciation expense for each of the remaining 25 years.

Reference no: EM132694250

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