The following expenditures are related to land, land improvements, and buildings, which were acquired on November 1, 2009.

Required:
Determine the cost of the land, the building and the improvements (Round to the nearest dollar)
Prepare journal entries on December 31, 2009 for depreciation assuming the building will have a useful life of 20 years and no residual value. Use double declining balance method and the half-year convention. Depreciate the land improvements using straight-line method, a 5 year life, to the nearest month with zero residual value (to the nearest dollar).

Question

The following expenditures are related to land, land improvements, and buildings, which were acquired on November 1, 2009.

Required:
Determine the cost of the land, the building and the improvements (Round to the nearest dollar)
Prepare journal entries on December 31, 2009 for depreciation assuming the building will have a useful life of 20 years and no residual value. Use double declining balance method and the half-year convention. Depreciate the land improvements using straight-line method, a 5 year life, to the nearest month with zero residual value (to the nearest dollar).

Quizplus · Accepted Answer

The Answer of The following expenditures are related to land, land improvements, and buildings, which were acquired on November 1, 2009.

Required:
Determine the cost of the land, the building and the improvements (Round to the nearest dollar)
Prepare journal entries on December 31, 2009 for depreciation assuming the building will have a useful life of 20 years and no residual value. Use double declining balance method and the half-year convention. Depreciate the land improvements using straight-line method, a 5 year life, to the nearest month with zero residual value (to the nearest dollar).

The Following Expenditures Are Related to Land, Land Improvements, and Buildings