Beckham Company constructed a warehouse for $280,000. Beckham estimates that the warehouse has a useful life of

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Beckham Company constructed a warehouse for $280,000. Beckham estimates that the warehouse has a useful life of 20 years and no residual value. Construction records indicate that $50,000 of the cost of the warehouse relates to its heating, ventilation, and air conditioning (HVAC) system, which has an estimated useful life of only 10 years. Compute the first year of depreciation expense using straight-line component depreciation.

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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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