eway Welcor x M Inbox 21867 ryangwaltneyxConnect snewconne

eway : Welcor x M Inbox (21,867) - ryangwaltneyxConnect s://newconnect.mheducation.com/flow/connect.html #4 Summer 2018 0 Saved You received no credit for this question in the previous attempt. Brief Exercise 11-10 Change in estimate; useful life of equipment [LO11-5] At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12.2 million. $9.2 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 25-year useful life, and a $1.2 million residual value. In 2018, the estimates of useful life and residual value were changed to 20 total years and $520,000, respectively. What is depreciation on the building for 2018? (Round answer to the nearest whole dollar.) $7,578,222 Prgy 21 of 23 Next > G Search or type URL 2 3 5 6

Solution

Building cost 9,200,000 Less: Salvage 1,200,000 Depreciable amount 8,000,000 Divide: Life 25 Annual Depreciation 320000 Dep of two years 640000 Book value in Beg. Of 2018 8,560,000 Less: Ssalvage rvised 520000 Depreciable amount 8,040,000 divide: Revised remaining life 18 Annual Depreciation 446666.7 Depreciation 446667