Solution-What is the amount of depreciation expense

What is the amount of depreciation expense

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Reference no: EM131572148

Problem -

Depreciation Methods - There three methods of depreciation calculation.

Straight-line Method - Depreciation expense = (Cost - Salvage value) x (1/ Useful life) x (# of months/12)

Double-declining Balance Method - Depreciation expense = Beginning book value x (1/Useful life x 200%)

Usage-based Method - Depreciation expense = (Cost - Salvage value) x (Units incurred during the current period / Total units expected from the asset)

Question -

On July 1, 20×1, Company Q purchased a building at $1,200,000. Buildings are depreciated using the straight-line depreciation method. Useful life of the building is 40 years. Salvage value of the building at the end of useful life is estimated as $120,000.

What is the amount of depreciation expense for 20×1?

What is the book value of the building at December 31, 20×1?

Reference no: EM131572148

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What is the amount of depreciation expense

Reference no: EM131572148

Reference no: EM131572148

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