A building was purchased for $100,000 on January 1, 2006. It was estimated to have no salvage

Question:

A building was purchased for $100,000 on January 1, 2006. It was estimated to have no and to have an estimated useful life of 20 years. On January 1, 2011, the estimated useful life was changed from 20 years to 30 years. Compute depreciation expense for 2011. Use straight-line depreciation.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...