Salem Company Hired Kirk Construction to Construct an Office Building

question 89

Multiple Choice

Salem Company hired Kirk Construction to construct an office building for ₤8,000,000 on land costing ₤2,000,000, which Salem Company owned. The building was complete and ready to be used on January 1, 2017 and it has a useful life of 40 years. The price of the building included land improvements costing ₤600,000 and equipment costing ₤750,000. The useful lives of the land improvements and the equipment are 10 years and 5 years, respectively. Salem Company uses component depreciation, and the company uses straight-line depreciation for other similar assets. What total amount of depreciation expense would Salem Company report on its income statement for the year ended December 31, 2017?

• A)₤335,000
• B)₤200,000
• C)₤426,250
• D)₤376,250

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Definitions:

Cultural Appropriation

The adoption of elements of one culture by members of another culture, often without understanding, respect, or acknowledgment of the original context and meaning.

White Gaze

The perspective or lens through which white people view individuals of other races, often reflecting inherent biases or assumptions.

Exoticize

The act of romanticizing or characterizing a culture, people, or geographical region as exotic or foreign in a simplistic or stereotypical way.

Rap Music

A musical genre that is part of hip-hop culture, characterized by rhythmic and rhyming speech. Rap music originated in the 1970s in the United States and has since become a major influence worldwide.