Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
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 hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.
