Answered

Find the best answers to your questions with the help of IDNLearn.com's expert contributors. Find in-depth and trustworthy answers to all your questions from our experienced community members.

Bonita Industries constructed a building at a cost of $14400000. Weighted-average accumulated expenditures were $5620000, actual interest was $566000, and avoidable interest was $272000. If the salvage value is $1120000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is

Sagot :

Tundexiidn

Answer:

$338,800

Explanation:

Cost of the building = $14400000

Average accumulated expenditures =  $5620000

Actual interest = $566000

Avoidable interest =  $272000

Salvage value = $1120000

Useful life = 40 years

Depreciation expense for the first full year:

= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life

= (($14400000 + $272000) - $1120000) / 40

= ($14672000 - $1120000) / 40

= $13552000 / 40

= $338,800

Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Your search for answers ends at IDNLearn.com. Thanks for visiting, and we look forward to helping you again soon.