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Questions 12-14 (of 18) Problem 7-7A Compute depreciation, amortization, and boo

ID: 2580899 • Letter: Q

Question

Questions 12-14 (of 18) Problem 7-7A Compute depreciation, amortization, and book value of lo The following information applies to the questions displayed below/ Solich Sandwich Shop had the following long-term asset balances as of December 31. 2018: Accumulated Depreciation Cost Land Building Equipment Patent Book Value $ 92000 292.480 184,900 141,000 $ 92000 457000$(164 520) 234.300 235.00094.000) (49.400) Solich purchased all the assets at the beginning of 2016 (3 years ago), The building is deprecia The equipment is dépreciated over a 9-year useful life using the straight-line method with an e value and is amortized using the straight line method Depreciation and amortization have bee References Section Break Problem 77A Compute depreciati

Explanation / Answer

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Book value on December 31,2018:

Land=$92,000

Building (292,480-58496 )=$233,984

Equipment (184900-24700)=$160,200

Patent(141,000-47,000 )=$94,000

Transaction General journal Debit credit 1. Depreciation expense(292,480×2/10) $58,496 Accumulated Depriciation $58,496 (To record depriciation on building) 2 Depriciation expense(234,300-12000)/9 $24,700 Accumulated Depriciation $24,700 (To record depriciation on equipment)