Swifty company constructed a building at a cost of $2,266,000 and occupied it beginning in january 2001. it was estimated at that time that its life would be 40 years, with no salvage value.
in january 2021, a new roof was installed at a cost of $309,000, and it was estimated then that the building would have a useful life of 25 years from that date. the cost of the old roof was $164,800.
1. what amount of depreciation should have been charged annually from the years 2001 to 2020? (assume straight-line depreciation.)

$56,650

Explanation:

Depreciation: The depreciation is an expense that shows a reduction in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement. It is a non-cash item that does not affect the cash balance.

The computation of the depreciation expense under the straight line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($2,266,000 - $0) ÷ (40 years)

= ($2,266,000) ÷ (40 years)  

= $56,650

In this method, the depreciation is same for all the remaining useful life

All other information which is given is not relevant. Hence, ignored it

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself