A building with a cost of $170,000 has an estimated residual value of $32,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method. What is the amount of the annual depreciation?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 6MC: At the end of the expected useful life of a depreciable asset with an estimated 15% residual value,...
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A building with a cost of $170,000 has an estimated residual value
of $32,000, has an estimated useful life of 9 years, and is depreciated by
the straight-line method. What is the amount of the annual
depreciation?
Transcribed Image Text:A building with a cost of $170,000 has an estimated residual value of $32,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method. What is the amount of the annual depreciation?
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