2

Depreciate the warehouse using the double declining balance method

The warehouse has an estimated useful life of 20 years with a salvage value of $40,000
Record the depreciation expense for year 10 and prepare the partial balance sheet at the end of year 10
Construction of a Warehouse
Contract Price	200,000
Building permit	1,500
Architect's fee	15,000
Engineering fees	7,500
Excavation costs	2,500
Interest on bank loan during construction period	1,000
Staff Salary - supervision of construction (six months)	12,500
Total Acquisition cost	240,000