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marusya05 [52]
3 years ago
14

Manziel Corporation constructed a building at a cost of $10,000,000. Average accumulated expenditures were $4,000,000, actual in

terest was $600,000, and avoidable interest was $300,000. If the salvage value is $800,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is
Business
1 answer:
stira [4]3 years ago
7 0

Answer:

$237,500

Explanation:

Cost of building      $10,000,000

Avoidable Interest            $300,000

Less;Salvage value           ($800,000)

Depreciation  Cost        $9,500,000

Depreciation per year $9,500,000/40=$237,500

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