Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
Answer:
To determine the balance in the Accumulated Depreciation-Building account for Crane at December 31, 2026, we need to follow these steps:
1. **Calculate the annual depreciation expense using the straight-line method:**
\[
\text{Annual Depreciation Expense} = \frac{\text{Cost of the Building} - \text{Salvage Value}}{\text{Useful Life}}
\]
2. **Determine the total depreciation for the period from October 1, 2025, to December 31, 2026:**
- First, calculate the depreciation for the year 2025 (from October 1 to December 31).
- Then, calculate the depreciation for the full year 2026.
### Step-by-Step Calculation
**1. Calculate the annual depreciation expense:**
\[
\text{Annual Depreciation Expense} = \frac{614,000 - 58,600}{25} = \frac{555,400}{25} = 22,216
\]
**2. Calculate the depreciation for the partial year 2025:**
The building was acquired on October 1, so the depreciation for 2025 will be for 3 months (October, November, December).
\[
\text{Depreciation for 2025} = \text{Annual Depreciation Expense} \times \frac{3}{12} = 22,216 \times \frac{3}{12} = 5,554
\]
**3. Calculate the depreciation for the full year 2026:**
\[
\text{Depreciation for 2026} = \text{Annual Depreciation Expense} = 22,216
\]
**4. Determine the total accumulated depreciation as of December 31, 2026:**
\[
\text{Total Accumulated Depreciation} = \text{Depreciation for 2025} + \text{Depreciation for 2026} = 5,554 + 22,216 = 27,770
\]
Therefore, the balance in the Accumulated Depreciation-Building account after adjusting entries at December 31, 2026, should be **$27,770**.
Explanation:
In the answer, everything has been explained in the main, you can see it well
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
