Question: Phelan Enterprises has a building that cost 987 000 when
Phelan Enterprises has a building that cost $ 987,000 when it was purchased five years ago. This building is being depreciated using the straight- line depreciation method over its useful life of 30 years. Recently the building was appraised for $ 1,000,000. What amount would be shown on the external balance sheet? Why? What amount(s) do you believe is important for management to understand? Why?
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