At December 31, 2012, the following data were Company: available for a building owned by NU
Building cost …………………………………………………… $800,000
Accumulated depreciation - building ………………………….. 600,000
Estimated residual value at end of useful life …………………. 50,000
Estimated remaining useful life …………………………………. 10 years
A small room was built on the back of the building at a cost of $50,000. The room was completed on June 30, 2013 and was used as office space commencing July 2, 2013. The company uses the straight-line depreciation method and accounts for partial years using the number of months the asset is available for use.
Required:
How much is the impact of this expenditure on income before taxes for 2013?