A company purchased a building three years ago for $150,000 and is using straight-line depreciation to depreciate it over 20 years. The salvage value of the building is $50,000. Prepare the adjusting entry to record the depreciation expense for the current year.

Adjusting Journal Entry for the current year:

Debit Depreciation Expense - Building $5,000

Credit Accumulated Depreciation - Building $5,000

To record depreciation expense on building for the year.

Explanation:

a) Data and Calculations:

Cost of building = $150,000

Method of depreciation = straight-line method

Salvage value of the building = $50,000

Useful life of the building = 20 years

Depreciable amount = $100,000 ($150,000 - $50,000)

Depreciation rate (expense) per year = $100,000/20 = $5,000

b) The straight-line method of depreciation is the easiest.  It spreads the cost of an asset over its useful life evenly.  The depreciable amount is obtained after deducting the residual value from the cost of the asset.  Then the depreciable amount is divided into the number of years that the asset will be in use.

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990.   the answer is there are 990 different ways the positions can be filled by these applicants