Wollyball Corporation started business on January 1 with the following long-lived fixed assets:  A 20,000 square foot office building purchased for $2.64 million, having an expected useful life of 20 years and a residual value of $200,000  24 desktop workstations costing $1,650 each, with an expected useful life of three years and no salvage value  Five automobiles costing $24,200 each, with an expected useful life of five years and a salvage value of $3,000 each 

A. Calculate the depreciation expense for each of the long-lived fixed assets for Years 1 and 2 using the straight- line depreciation method.

B. Calculate the depreciation expense for each of the long-lived fixed assets for Years 1 and 2 using the double- declining balance method. 

C. Determine the net book value for each long-lived fixed asset at the end of Year 2 using: i. straight-line depreciation ii. double-declining-balance

 

Answer rating: 100% (QA)

A Straightline depreciation method 1 Office building Cost 2640000 Residual value 200000 Useful life 20 years Depreciation expense per year Cost Residual value Useful life Depreciation expense for Year ... View the full answer