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A building acquired at the beginning of the year at a cost of $108,200 has an...

A building acquired at the beginning of the year at a cost of $108,200 has an estimated residual value of $4,200 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost $ (b) The straight-line rate % (c) The annual straight-line depreciation $

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Answer #1
(a) Computation of Depreciable cost
Cost of the building at the beginning of the Year 108200
Less: Residual Value 4200
Depreciable cost (108200-4200) 104000
(b) Computation of Straight Line rate%
Annual Straight Line Depreciation (104000/10) 10400
Cost of the building at the beginning of the Year 108200
Less: Residual Value 4200
Straight Line rate (10400/(108200-4200)) 10%
(c ) Computation of Annual Straight Line Depreciation
Depreciable cost (108200-4200) 104000
Estimated Useful Life 10 Years
Annual Straight Line Depreciation (104000/10) 10400
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