At December 31,2018,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 30,2019 and was used as office space commencing July 2,2019.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 2019?

Question

At December 31,2018,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 30,2019 and was used as office space commencing July 2,2019.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 2019?

Quizplus · Accepted Answer

The Answer of At December 31,2018,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 30,2019 and was used as office space commencing July 2,2019.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 2019?

At December 31,2018,the Following Data Were Available for a Building