Presented below are the components related to an office block that Veenman NV is considering purchasing for not 10,000,000 Instructions a Compute depreciation expense for 2019, assuming that Veenman uses component depreciation (zero residual value) b Assume that the building engineering was replaced in 20 years at a cost of not 2,300,000 Prepare the entry to record the replacement of the old component with the new component Useful Life Component Land Value Indefinite life 3,000,000 4,200,000 60 year life Building engineering 30 year life Building external works 30 year life Building structure 2,100,000 700,000

Question: Presented below are the components related to an office block that Veenman NV is considering purchasing for ¬10,000,000. Instructions a. Compute depreciation expense for 2019,

Presented below are the components related to an office block that Veenman NV is considering purchasing for ‚¬10,000,000.

Instructions
a. Compute depreciation expense for 2019, assuming that Veenman uses component depreciation (zero residual value).
b. Assume that the building engineering was replaced in 20 years at a cost of ‚¬2,300,000. Prepare the entry to record the replacement of the old component with the new component.

Useful Life Component Land Value Indefinite life 3,000,000 4,200,000 60-year life Building engineering 30-year life Building external works 30-year life Building structure 2,100,000 700,000

Step by Step Solution

★★★★★

3.43 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Component Depreciation Expense Building structure 4200000 60 70000 Build... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1353-B-M-A-I(4051).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Presented below are the components in Waegelain Companys income statement. Determine the missing amounts. Cost of Goods Sold Operating Gross Profit Net Sales Expenses ? Income (a) $75,000 (b)...

Presented below are the components in Miller Company?s income statement. Determine the missing amounts. Cost of Goods Sold Sales Revenue Gross Operating Expenses Net Income Profit (a) $75,000 (b)...

Presented below are the components in Clearwater Companys income statement. Determine the missingamounts. Gross Operating Sales Revenue Cost of Goods Sol Proft Expenses Net (a) $75,000 (b) $108,000...

Presented below are the components related to an office block that Veenman NV is considering purchasing for 10,000,000. Instructions a. Compute depreciation expense for 2022, assuming that Veenman...

E 1 1 . 1 7 ( LO 2 ) ( Component Depreciation ) Presented below are the components related to an office block that Veenman NV is considering purchasing for \ ( 1 0 , 0 0 0 , 0 0 0 \ ) . Instructions...

E10.17 (LO 2) (Component Depreciation) Presented below are the components related to an office block that Veenman NV is considering purchasing for 10,000,000. Component Useful Life Value Land...

Presented below are the components related to an office block that Veenman Company is considering purchasing for 10,000,000. Instructions (a) Compute depreciation expense for 2015, assuming that...

A- Presented below are the components related to an office block that Naeem Company is considering purchasing for 10,000,000. Component Useful Life Value Land Indefinite life 3,000,000 Building...

. IFRS requires capitalizing actual interest (with modification). What items are to be considered for capitalization? Explain. b. On November 1, 2010, Saif Company contracted Ahmed Construction Co....

Qi What are the items considered in Capitalization of interests? Describe each item Il marks) Q2. Intangible assets have three main characteristics: (1) they are identifiable, (2) they lack physical...

A Simal x ) has a foaier tran sform of x()=JW then 1+TW the imerse fougies tiransfuam xt) at t=2 B-1 ye 4e 4Te 45e

At 30 September 20X3 the closing inventory of a company amounted to $386,400. The following items were included in this total at cost: 1 1,000 items which had cost $18 each. These items were all sold...

what the term for the type of solution involving collective action to strategically address a problem, typically where an institution enacts a new procedure, passes a law, or makes an official...

Transferring items into storage areas Holding or carrying costs

Carly Inc. reported the following accounting income (loss) and related tax rates during the years 2006 to 2012: Accounting income (loss) and taxable income (loss) were the same for all years since...

Chen Corporation reported income before taxes for the year ended December 31, 2011, of $1,645,000. In preparing the 2011 financial statements, the accountant discovered an error that was made in...

Aaron Engines Ltd. operates small engine repair outlets and is a tenant in several of Tran Holdings Inc.'s strip shopping malls. Aaron signed several lease renewals with Tran that each called for a...

How are Medicaid payments to providers limited by the federal government? Compare and contrast an aggressive and conservative asset mix strategies. (Your comparison should address goals, liquidity,...

Fill the table Our simple example considers a firm that engages in business for five periods. In each period, the firm makes an initial investment of $100. This investment generates sales in the next...

Book value Find the book value for the asset shown in the accompanying table, assuming that MACRO depreciation is bling used Recovery Elapsed time period since purchase Asset Installed cost (years)...