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:

Supportive Leadership

A leadership style that emphasizes showing concern for employees' well-being, and is characterized by encouraging participation and valuing individuals' inputs.

Participative Leadership

A leadership style where decision-making is shared among group members, promoting collaboration and inclusivity.

Transactional Leadership

A leadership style focused on routine transactions, including reward and punishment, to motivate employees towards achieving established goals.

Achievement-oriented Leadership

A leadership style focused on setting challenging goals, emphasizing excellence, and showing confidence in the abilities of team members.