A building was purchased for $50,000. The asset has an expected useful life of 6 years and depreciation expense each year is $8,000 using the straight-line method. What is the residual value of the building?

Name: A building was purchased for $50,000. The asset has an expected useful life of 6 years and depreciation expense each year is $8,000 using the straight-line method. What is the residual value of the building?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

($50,000 - X)/6 years = $8,000 depreciation expense, therefore X = $2,000.

A Building Was Purchased for $50,000