At December 31, 2012, the following data were available for a building owned by Omega Company:
A small room was built on the back of the building at a cost of $45,000. The room was completed on June 30, 2013 and was used as office space commencing July 2, 2013. The company uses straight-line depreciation, and accounts for partial years using the number of months the asset is available for use.
Required:
How much is the impact of this expenditure on income before taxes for 2013?

Question

At December 31, 2012, the following data were available for a building owned by Omega Company:
  A small room was built on the back of the building at a cost of $45,000. The room was completed on June 30, 2013 and was used as office space commencing July 2, 2013. The company uses straight-line depreciation, and accounts for partial years using the number of months the asset is available for use.
Required:
How much is the impact of this expenditure on income before taxes for 2013?

Quizplus · Accepted Answer

The Answer of At December 31, 2012, the following data were available for a building owned by Omega Company:
  A small room was built on the back of the building at a cost of $45,000. The room was completed on June 30, 2013 and was used as office space commencing July 2, 2013. The company uses straight-line depreciation, and accounts for partial years using the number of months the asset is available for use.
Required:
How much is the impact of this expenditure on income before taxes for 2013?

At December 31, 2012, the Following Data Were Available for a Building