Computing Depreciation and Accounting for a Change of Estimate
In January of Year Rankine Company paid $ for land and a building. An appraisal estimated that the land had a fair value of $ and the building was worth $ Rankine estimated that the useful life of the building was years, with no residual value.
a Calculate annual depreciation expense using the straightline method.
b Calculate depreciation for Year and Year using the doubledecliningbalance method.
Do not round until your final answer. Round answer to the nearest whole number.
Year $
Year $
c Assume that in Year Rankine changed its estimate of the useful life of the building to years. If the company is using the doubledecliningbalance method of depreciation, what amount of depreciation expense would Rankine record in Year
Do not round untilyour final answer. Round answer to the nearest whole number.
$
