On January 1, 2021, Bridgetown Corporation purchased land, a building, and Equipment, together called the...
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Accounting
On January 1, 2021, Bridgetown Corporation purchased land, a building, and Equipment, together called the property, plant and equipment or PPE. The allocated cost for land was $150,000, for building was $300,000 and for equipment it was $108,000.
a. The building had an estimated useful life of 30 years and residual value of $20,000. Calculate the depreciation expense for the building using the straight-line method. (2 marks) b. For the equipment with useful life of 10 years, and 100,000 units, and no residual value, calculate the depreciation expense for 2021 and 2022 using the units of production method. The equipment produced 8,000 units in 2021 and 12,000 units in 2022. (4 marks) c. What is the book value of the PPE of Bridgetown on Dec 31, 2022? (4 marks)
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