Shahia company bought a building for $88,000 cash and the land on which it was located for $117,000 cash. the company paid transfer costs of $16,000 ($4,000 for the building and $12,000 for the land). renovation costs on the building before it could be used were $25,000. 2. compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $8,000 estimated residual value.

Depreciation amount at the end of one year is $10,900

Explanation:

Land is not depreciated because land is assumed to have an unlimited useful life. Building is a long lived assest and it has limited useful lives. Therefore, building is depreciated assets.

The building acquisition cost is = Building transaction value + building transfer costs + Renovation cost

= $88,000 + $4,000 + $25,000

= $117,000

Depreciation value = The building acquisition cost - The residual value

= $117,000 - $8,000

= $109,000

Depreciation amount under the Straight-line method is calculated as below:

Yearly depreciation =

=

= $10,900

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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