RB's plant building (original cost $600,000; estimated useful life,30 years,residual value,$120,000) no longer has space for storage of raw materials.At the start of Year 21,the company purchased an addition (a wood building) which was attached to the plant building.The wood building cost $60,000 and,under normal conditions,would have a useful life of 15 years and no residual value.
Give the entry that RB should make at the end of the accounting period,December 31,Year 21,to record amortization expense,assuming straight-line amortization for these capital assets.Clearly explain the basis for any assumptions you have made.

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The Answer of RB's plant building (original cost $600,000; estimated useful life,30 years,residual value,$120,000) no longer has space for storage of raw materials.At the start of Year 21,the company purchased an addition (a wood building) which was attached to the plant building.The wood building cost $60,000 and,under normal conditions,would have a useful life of 15 years and no residual value.
Give the entry that RB should make at the end of the accounting period,December 31,Year 21,to record amortization expense,assuming straight-line amortization for these capital assets.Clearly explain the basis for any assumptions you have made.

RB's Plant Building (Original Cost $600,000; Estimated Useful Life,30 Years,residual