Golf Unlimited Inc. (GUI), an entity that reports under ASPE, acquired a building at a cost of $1,000,000 on January 1, Year 1. Amortization for the building was set on a straight-line basis over 25 years with a $100,000 residual value. In early Year 6, the company determined that the building will likely last a total of 29 years (24 years remaining), but the estimated residual value will be $0 at that time. The company's fiscal year end is December 31. 

What amount will GUI report in its Year 6 financial statements as amortization expense pertaining to the building?

Answer rating: 100% (QA)

To calculate the amortization expense for Year 6 pertaining to the building we first need to determi... View the full answer