Funseth Company purchased a five-story office building on January 1, 2011, at a cost of $5,000,000....

 

Transcribed Image Text:

Funseth Company purchased a five-story office building on January 1, 2011, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2013, construction of a sixth floor was completed at a cost of $1,650,000. Required: Calculate the depreciation on the building and building addition for 2013 and 2014 assuming that the addition did not change the life or residual value of the building. Funseth Company purchased a five-story office building on January 1, 2011, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2013, construction of a sixth floor was completed at a cost of $1,650,000. Required: Calculate the depreciation on the building and building addition for 2013 and 2014 assuming that the addition did not change the life or residual value of the building.

Answer rating: 100% (QA)

To calculate the depreciation on the building and building addition for 2013 and 2014 we need to fir... View the full answer