In 1998, Tamarisk Company completed the construction of a building at a cost of $2,320,000 and first occupied it in January 1999. It was estimated that the building will have a useful life of 40 years and a salvage value of $68,800 at the end of that time. Early in 2009, an addition to the building was constructed at a cost of $580,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $23,200. In 2027, it is determined that the probable life of the building and addition will extend to the end of 2058, or 20 years beyond the original estimate. (a) (b). (c) Your answer is partially correct. Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2027. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation - Buildings Debit 92,000 Credit 92,000

In 1998, Tamarisk Company completed the construction of a building at a cost of $2,320,000 and first occupied it in January 1999. It was estimated that the building will have a useful life of 40 years and a salvage value of $68,800 at the end of that time. Early in 2009, an addition to the building was constructed at a cost of $580,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $23,200. In 2027, it is determined that the probable life of the building and addition will extend to the end of 2058, or 20 years beyond the original estimate. (a) (b). (c) Your answer is partially correct. Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2027. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation - Buildings Debit 92,000 Credit 92,000

Name: dont give answer in image format In 1998, Tamarisk Company completed t
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Description: dont give answer in image format In 1998, Tamarisk Company completed the construction of a building at a cost of $2,320,000 and first occupied it in January 1999. Itwas estimated that the building will have a useful life of 40 years and a salvage val

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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