Answer:
(a) 19,400 dep expense for building 1991-2000 period
(b) 25,800 dep expense for building 2001-2018 period
(c) <em>no entry required</em> as this additional information arises during this year and wasn't available in the previous year. It wasn't a lack of sufficient information or accoutning mistake that produced.
Explanation:
(a)
cost - salvage value / useful life = depreication per year
(800,000 - 24,000) / 40 = depreciation expense per year
dep expense 19,400
(b)
<u>building book value:</u>
cost - accumulated depreciation
800,000 - 19,400 x 10 years = 606,000
addtional construction 200,000
total value 806,000
salvage value: 24,000 + 8,000= 38,000
useful life 30 years
deprecation expense betwene 2001 and 2018 related to building
(806,000 - 32,000 ) / 30 years = 25,800
