straight-line depreciation
I am stuck with a question regarding the straight-line depreciation!
If a building has a cost of $200,000 and has a residual value of $10,000 and a 40-year useful life. The building was purchase in May 2006. A year prior.
Do I first use the straightline depreciation method? What do I do with the part of the question where it was purchased a year prior?? Am I supposed to minus the one year the building was used from the 40 year useful life..
CAN SOMEONE PLEASE HELP!!
THANKS!