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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
E7-21A (Learning Objective 3: Change a plant asset’s useful life) Assume Z-1 Software Consultants purchased a building for $445,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $90,000. After using the building for 20 years, Z-1 realized that the building will remain useful only 15 more years. Starting with the 21st year, Z-1
began depreciating the building over a revised total life of 35 years and decreased the residual value to $14,900. Record depreciation expense on the building for years 20 and 21.
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