Answer:
Selvick company should record the building at $220,000 and accumulation depreciation of $44,000
Explanation:
The computation of deprecation is shown below:
Depreciation = (Original cost - salvage value) ÷ useful life
where,
Original cost is $220,000
Salvage value is 0
And, the useful life is 20 years
Now put these values to the above formula
So, the answer would be equal to
= $220,000 - 0 ÷ 20
= $11,000
And, the accumulated depreciation would be
= Depreciation × number of years
= $11,000 × 4
= $44,000
we ignored other information which is given in the question, as we have to compute the depreciation through Straight line method.
Hence, Selvick company should record the building at $220,000 and accumulation depreciation of $44,000
