Assuming that the building costs $700,000 (do not include the cost of the land) and has an estimated life of 40 years and a salvage value of $280,000. The accumulated depreciation (straight line method) would be: $52,500
Here is how we calculate it:
Applying the accumulated depreciation formula:
accumulated depreciation = ((cost of the asset - salvage value)/life of the asset) × number of years.
Substitute in the values given:
accumulated depreciation = ((700,000 - 280,000)/40) × 5.
Solve:
accumulated depreciation = $52,500.
Read more