Istandul Enterprise constructed a building at a cost of TL24,000,000.Average accumulated expenditures were TL17,000,000, actual interest was TL2,120,000, and avoidable interest was TL1,600,000.If the salvage value is TL4,600,000, and the useful life is 30 years, depreciation expense for the first full year using the straight-line method is

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates depreciation by subtracting the salvage value from the cost and dividing by the useful life. (TL24,000,000 - TL4,600,000) / 30 = TL700,000.

Istandul Enterprise Constructed a Building at a Cost of TL24,000,000