contestada

Huffman corporation constructed a building at a cost of $30,000,000. weighted-average accumulated expenditures were $12,000,000, actual interest was $1,200,000, and avoidable interest was $600,000. if the salvage value is $2,400,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is

Respuesta :

shinmin

Straight line method formula is depreciable amount / estimated useful life.

Plugging in our data from the problem above:

 

  [(30,000,000 + 2,000,000) - 2,400,000

= ----------------------------------------------------

                        40 years

 

   32,000 000 – 2,400,000

= ----------------------------------

               40 years

 

     29,600,000

=  ---------------

       40 years

 

= 740,000 is the depreciation for the first full year.