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UnigirlBelle · Sep 8, 2009, 09:16 AM

Can anyone help me figure this out. I have building and office equipment in the trial balance. The building costs $22,000 and the office equipment costs $6,800. The accumulated depreciation of the building is $6,000 and the accumulated depreciation of the office equipment is $2,100. In the additional data is states that building depreciation is calculated at 5% per year and office depreciation is calculated at 10% per year. Since there was no year given for each I figured you divided the accumulated depreciation by the percentage, I came up with $300.00 and $210.00 but those were wrong. I can't figure out what other way to do it without additional information to do any of the methods given in my text. :confused:

morgaine300 · Sep 8, 2009, 01:34 PM

You're making it difficult. What is already in the accumulated depreciation is irrelevant to what they are saying. When they say, for instance, that the building is depreciated at 5% per year, they mean quite literally 5% of the building cost.

UnigirlBelle · Sep 8, 2009, 01:55 PM

So if the building costs $22,000, I just take 5% of that to equal $1,100 and $6,800 and 10% of that is $680.

morgaine300 · Sep 9, 2009, 12:40 AM

Yup, that's pretty much it. :-)

UnigirlBelle · Sep 9, 2009, 02:33 AM

Thanks.