# USACalculation of accumulated depreciation

#### Amel

buildings , july 31, 2021, unadjusted balance 243000 . the company owns a building purchased on Sep 01, 2017. for 243000 with an estimated 30 year useful life. the company uses straight line depreciation . how much is the annual depreciation expense for the building .
How much should the adjusted balance in the accumulated depreciation buildings account be at Jul 31, 2021.
-how should the adjusted balance in the accumulated depreciation buildings account be at July 31, 2021? My answer was \$40 500.00 ( calculated. The accumulated depreciation amount from 2017 to 2021) but it wasn’t right

-How much should the adjusted balance in the accumulated depreciation- buildings account be at July 31, 2021 ? My answer was \$48 600. 00 . Again this wasn’t right .

#### DrStrangeLove

VIP Member
This problem is a lot easier if you work in months rather than in whole years. When you're calculating the accumulated depreciation amount, note that the time period you're depreciating for isn't a whole number of years (from 9/1/2017 and 7/31/2021), but it is a whole number of months.

#### Amel

Thanks for the hint . I got it now . The accumulated depreciation would be 23,625 as in the first year from 01 Sep 2017 to 31 Jul 2018 we count only 11 months and then the second year 01 Aug 2018 to 31 Jul 2019 is 12 month and so is for the 3 rd year 01 Aug 2019 to 31 Jul 2020 . The unadjusted amount would be 7,425( 11 months) + 16,200
The adjusted amount at end of Jul 31,2021 would be 31,725

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