Greg Maddox Company constructed a building at a cost of$2,200,000 and occupied it beginning in January 2001. It wasestimated at that time that its life would be 40 years, with nosalvage value. In January 2021, a new roof was installed at a costof $300,000, and it was estimated then that the building would havea useful life of 25 years from that date. The cost of the old roofwas $160,000. Instructions a. What amount of depreciation shouldhave been charged annually from the years 2001 to 2020? (Assumestraight-line depreciation.) b. What entry should be made in 2021to record the replacement of the roof? c. Prepare the entry inJanuary 2021 to record the revision in the estimated life of thebuilding, if necessary. d. What amount of depreciation should becharged for the year 2021?
