Back to Study Group
I
Bookvalue of office building
Ishant-Patel-66407 - 07/16/2020, 3:09 pm

If ony $90,000 is capitalized and the remaining $110,000 is expensed, does that make the NBV of the building $1,890,000?

Reply
Comment
Report
1
David-67344 - 07/29/2020, 8:11 pm

Yes, that would be the capitalized value of the building asset on the 12/31/Y1 balance sheet. It's the amount that would be used to calculate depreciation expense beginning in year 2.

Comment
Report