Question: At December 31, 2017, the following data were available for a building owned by NU Company: Building cost ........................................................................................ $800,000 Accumulated depreciationbuilding ............................................ 600,000 Estimated

At December 31, 2017, the following data were available for a building owned by NU Company:

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, 2018, and was used as office space commencing July 2, 2018. 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 2018?

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