Kozy Kitchens Inc.has a new showroom that cost $400,000.It will be amortized using the declining balance method at a rate of 5%.The estimated residual value of the building is $50,000, and it has an expected useful life of 20 years.Assuming the first year's depreciation expense was recorded properly, what would be the net book value of the showroom at the end of the second year (after adjusting entries)?

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The Answer of Kozy Kitchens Inc.has a new showroom that cost $400,000.It will be amortized using the declining balance method at a rate of 5%.The estimated residual value of the building is $50,000, and it has an expected useful life of 20 years.Assuming the first year's depreciation expense was recorded properly, what would be the net book value of the showroom at the end of the second year (after adjusting entries)?