At the beginning of 2009, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2009 and 2010 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2011, the estimates of useful life and residual value were changed to 20 years and $500,000, respectively. What is depreciation on the building for 2011?
Answer to relevant QuestionsRefer to the situation described in BE 11-7. Assume that instead of changing the useful life and residual value, in 2011 the company switched to the double-declining-balance depreciation method. How should Robotics account ...Refer to the situation described in BE 11-13. Assume that SCC's fair value of $40 million approximates fair value less costs to sell and that the present value of SCC's estimated future cash flows is $41 million. If ...On April 29, 2011, Quality Appliances purchased equipment for $260,000. The estimated service life of the equipment is six years and the estimated residual value is $20,000. Quality's fiscal year ends on December ...Janes Company provided the following information on intangible assets:a. A patent was purchased from the Lou Company for $700,000 on January 1, 2009. Janes estimated the remaining useful life of the patent to be 10 years. ...Refer to the situation described in Exercise 11-22.Required:How might your solution differ if Chadwick Enterprises, Inc., prepares its financial statements according to International Accounting Standards? Assume that the ...
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