On january 1 2018 xyz company paid 380000 to purchase land


Question: On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market values of these assets on that date were: land $80,000; building $200,000; equipment $120,000. Before the property could be used, XYZ Company had to spend $6,000 to put the equipment in working order. The building was assigned a residual value of $10,000. Under the straight-line method, the book value of the building at April 30, 2021 would have been equal to $166,000. Calculate the amount of depreciation expense recorded on the building for 2019 using the double-declining balance depreciation method. Do not use decimals in your answer.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: On january 1 2018 xyz company paid 380000 to purchase land
Reference No:- TGS02555139

Now Priced at $15 (50% Discount)

Recommended (97%)

Rated (4.9/5)