A building with a cost of $843,750 has an estimated residual value of $168,750, has an estimated useful life of 27 years, and is depreciated by the straight-line method. a.  What is the amount of the annual depreciation? Do not round intermediate calculations. $fill in the blank 1 b.  What is the book value at the end of the fifteenth year of use? $fill in the blank 2 c.  If at the start of the sixteenth year it is estimated that the remaining life is 15 years and that the residual value is $33,750, what is the depreciation expense for each of the remaining 15 years?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A building with a cost of $843,750 has an estimated residual value of $168,750, has an estimated useful life of 27 years, and is depreciated by the straight-line method.

a.  What is the amount of the annual depreciation? Do not round intermediate calculations.
$fill in the blank 1

b.  What is the book value at the end of the fifteenth year of use?
$fill in the blank 2

c.  If at the start of the sixteenth year it is estimated that the remaining life is 15 years and that the residual value is $33,750, what is the depreciation expense for each of the remaining 15 years?

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