3. October 1, a company purchases a building for $160,000, $10,000 salvage value, and 15-year useful...

 

Transcribed Image Text:

3. October 1, a company purchases a building for $160,000, $10,000 salvage value, and 15-year useful life. On October 1 of year 6, the asset book value is $110,000, and management determines the salvage value should be $25,000 instead of $10,000. a. What should depreciation be for the last 3 months of the year? (2 points) b. Record depreciation for the Part a. (2 points) 3. October 1, a company purchases a building for $160,000, $10,000 salvage value, and 15-year useful life. On October 1 of year 6, the asset book value is $110,000, and management determines the salvage value should be $25,000 instead of $10,000. a. What should depreciation be for the last 3 months of the year? (2 points) b. Record depreciation for the Part a. (2 points)