Question: On January 1 2014 OSF Inc purchased land building equipment

On January 1, 2014, OSF Inc. purchased land, building, equipment, and tools for a total of $2,520,000. An appraisal identified the fair values to be $700,000 (land), $1,120,000 (building), $210,000 (equipment), and $70,000 (tools). The estimated useful life and residual value of the building was 10 years and $700,000; for the equipment, five years and $42,000; and for the tools, three years and $7,000. Calculate depreciation for 2014 and 2015 using the double-declining-balance method. Albacore’s year-end is December 31.

Analysis Component: Explain depreciation as it applies to land.

Sale on SolutionInn
  • CreatedJanuary 08, 2015
  • Files Included
Post your question