In 1991, Herman Moore Company completed the construction of a building at a cost of $1,900,000 and first occupied it in January 1992. It was estimated that the building will have a useful life of 40 years and a salvage value of $60,000 at the end of that time. Early in 2002, an addition to the building was constructed at a cost of $470,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years, and a salvage value of $20,000. In 2020, it is determined that the probable life of the building and addition will extend to the end of 2051, or 20 years beyond the original estimate. Compute the annual depreciation that would have been charged from 2002-2019 (using straight-line method).
In 1991, Herman Moore Company completed the construction of a building at a cost of $1,900,000 and first occupied it in January 1992. It was estimated that the building will have a useful life of 40 years and a salvage value of $60,000 at the end of that time.
Early in 2002, an addition to the building was constructed at a cost of $470,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years, and a salvage value of $20,000.
In 2020, it is determined that the probable life of the building and addition will extend to the end of 2051, or 20 years beyond the original estimate.
Compute the annual depreciation that would have been charged from 2002-2019 (using straight-line method).
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