Accum . depr through 2014 * $ 73,632 $ 83,072 $ 35,400 $ 37,760
* In the year an asset is purchased , Eshkol , Inc . does not record any depreciation expense on the asset .
In the year an asset is retired or traded in , Eshkol , Inc . takes a full year ’ s depreciation on the asset .
21 ) Mandall Company constructed a warehouse for $ 280,000 on January 2 , 2014 . Mandall estimates that the warehouse has a useful life of 20 years and no residual value . Construction records indicate that $ 40,000 of the cost of the warehouse relates to its heating , ventilation , and air conditioning ( HVAC ) system , which has an estimated useful life of only 10 years . What is the first year of depreciation expense using straight-line component depreciation under IFRS ?
22 ) Francisco Corporation is constructing a new building at a total initial cost of $ 10,000,000 . The building is expected to have a useful life of 50 years with no residual value . The building ’ s finished surfaces ( e . g ., roof cover and floor cover ) are 5 % of this cost and have a useful life of 20 years . Building services systems ( e . g ., electric , heating , and plumbing ) are 20 % of the cost and have a useful life of 25 years . The