1. In 1995, the construction of a building of Grim plc for 1,000,000 was completed and...

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1. In 1995, the construction of a building of Grim plc for 1,000,000 was completed and was ready to use in January 1996. It was estimated that the building would have a useful life of 40 years and a salvage value of 50,000 at the end of that time. Early in 2006, an expansion to the building was constructed for 250,000. 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 expansion would have a life of 30 years and a salvage value of 20,000. In 2024, it is determined that the probable life of the building and addition will extend to the end of 2055, or 20 years beyond the original estimate. Instructions a) Using the straight-line method, compute the annual depreciation that would have been charged each year from 1996 through 2006. b) Compute the annual depreciation that would have been charged from 2006 through 2023. c) Compute the annual depreciation to be charged, beginning with 2024. 1. In 1995, the construction of a building of Grim plc for 1,000,000 was completed and was ready to use in January 1996. It was estimated that the building would have a useful life of 40 years and a salvage value of 50,000 at the end of that time. Early in 2006, an expansion to the building was constructed for 250,000. 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 expansion would have a life of 30 years and a salvage value of 20,000. In 2024, it is determined that the probable life of the building and addition will extend to the end of 2055, or 20 years beyond the original estimate. Instructions a) Using the straight-line method, compute the annual depreciation that would have been charged each year from 1996 through 2006. b) Compute the annual depreciation that would have been charged from 2006 through 2023. c) Compute the annual depreciation to be charged, beginning with 2024.