Using the new residual value

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Reference no: EM131203395

Wholesale Hardware Consultants purchased a building for 620,000 and depreciated it on a? straight-line basis over a 25?-year period. The estimated residual value is $120,000. After using the building for 15? years,Wholesale realized that wear and tear on the building would wear it out before 25 years and that the estimated residual value should be $106,000. Starting with the 16th? year, Wholesale began depreciating the building over a revised total life of 20 years using the new residual value. Journalize depreciation expense on the building for years 15 and 16

Reference no: EM131203395

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