A building was purchased on January 1 that had an estimated useful life of 40 years...
A building was purchased on January 1 that had an estimated useful life of 40 years and a residual value of $40,000. The company's Depreciation Expense for that year was $40,000 on the building. What was the original cost of the building ? (straight-line depreciation expense)
A.$720,000
B.$760,000
C.$800,000
D. $840,000
Homework Answers
Depreciation expense = (original cost of the building - residual value) / life
40000 = (original cost of the building - 40000) / 40
original cost of the building = $1640000
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