Blossom Farms purchased real estate for $1,210,000, which included $6,500 in legal fees. It paid $264,000...
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Blossom Farms purchased real estate for $1,210,000, which included $6,500 in legal fees. It paid $264,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $481,680, a building appraised at $735,900, and fences and other land improvements appraised at $120,420. The building has an estimated useful life of 60 years and a $52,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. Calculate the annual depreciation expense for the building and land improvements assuming Blossom Farms uses straight-line depreciation. (Round answers to 0 decimal places, e.g. 5,275.) Building Land Improvements Annual Depreciation Expense Blossom Farms purchased real estate for $1,210,000, which included $6,500 in legal fees. It paid $264,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $481,680, a building appraised at $735,900, and fences and other land improvements appraised at $120,420. The building has an estimated useful life of 60 years and a $52,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. Calculate the annual depreciation expense for the building and land improvements assuming Blossom Farms uses straight-line depreciation. (Round answers to 0 decimal places, e.g. 5,275.) Building Land Improvements Annual Depreciation Expense
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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