Salvage value to telco, The warehouse is to be depreciated

Salvage value to telco

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Reference no: EM131809811

TELCO Corp. has leased some industrial land near its plant. It is building a small warehouse on the site at a cost of $250,000. The building will be ready for use January 1. The lease will expire 15 years after the building is occupied. The warehouse will belong at that time to the landowner, with the result that there will be no salvage value to TELCO. The warehouse is to be depreciated either by MACRS or SOYD depreciation. If 10% interest is appropriate, which depreciation method should be selected?

Reference no: EM131809811

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