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Category > Accounting Posted 25 Apr 2017 My Price 2.00

Francisco Corporation is constructing a new

Francisco Corporation is constructing a new building at a total initial cost of $10,000,000. The building is expected to have a useful life of 50 years with no residual value. The building’s finished surfaces (e.g., roof cover and floor cover) are 5% of this cost and have a useful life of 20 years. Building services systems (e.g., electric, heating, and plumbing) are 20% of the cost and have a useful life of 25 years. The depreciation in the first year using component depreciation, assuming straight-line depreciation with no residual value, is:

(a) $200,000                        (c) $255,000

(b) $215,000                       (d) None of the above

 

May 10 2016 06:07 PM

 

 

Answers

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Status NEW Posted 25 Apr 2017 04:04 PM My Price 2.00

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file 1493139665-Answer.docx preview (141 words )
F-----------ran-----------cis-----------co -----------Cor-----------por-----------ati-----------on -----------is -----------con-----------str-----------uct-----------ing----------- a -----------new----------- bu-----------ild-----------ing----------- at----------- a -----------tot-----------al -----------ini-----------tia-----------l c-----------ost----------- of----------- $1-----------0,0-----------00,-----------000-----------. T-----------he -----------bui-----------ldi-----------ng -----------is -----------exp-----------ect-----------ed -----------to -----------hav-----------e a----------- us-----------efu-----------l l-----------ife----------- of----------- 50----------- ye-----------ars----------- wi-----------th -----------no -----------res-----------idu-----------al -----------val-----------ue.----------- Th-----------e b-----------uil-----------din-----------gâ€-----------™s -----------fin-----------ish-----------ed -----------sur-----------fac-----------es -----------(e.-----------g.,----------- ro-----------of -----------cov-----------er -----------and----------- fl-----------oor----------- co-----------ver-----------) a-----------re -----------5% -----------of -----------thi-----------s c-----------ost----------- an-----------d h-----------ave----------- a -----------use-----------ful----------- li-----------fe -----------of -----------20 -----------yea-----------rs.----------- Bu-----------ild-----------ing----------- se-----------rvi-----------ces----------- sy-----------ste-----------ms -----------(e.-----------g.,----------- el-----------ect-----------ric-----------, h-----------eat-----------ing-----------, a-----------nd -----------plu-----------mbi-----------ng)----------- ar-----------e 2-----------0% -----------of -----------the----------- co-----------st -----------and----------- ha-----------ve -----------a u-----------sef-----------ul -----------lif-----------e o-----------f 2-----------5 y-----------ear-----------s. -----------The-----------
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