Twin-Cities, Inc., purchased a building for $600,000. Straight-line depreciation was used for each of the first two years using the following
assumptions: 25-year estimated useful life, with a residual value of $100,000.
4.1. Calculate the annual depreciation for the first two years that Twin-Cities owned the building.
4.2. Calculate the book value of the building at the end of the second year.
Sample Solution
