how to; compute straight-line depreciation on the building at the end of one yea
ID: 2582025 • Letter: H
Question
how to; compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $20,000 estimated residual value. (Do not round intermediate calculations.)
also; What should be the book value of (a) the land and (b) the building at the end of year 2?
how to; compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $20,000 estimated residual value. (Do not round intermediate calculations.)
also; What should be the book value of (a) the land and (b) the building at the end of year 2?
[The following information applies to the questions displayed below.] Bridge City Consulting bought a building and the land on which it is located for $185,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $15,000 for building renovations before it was ready for use. 1. value: 3.00 points Required 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Cash Buildings Land 170,000 59,000 111,000Explanation / Answer
1. Journal entry :
Building dep = (Cost-salvage value)/Useful life
= (89000-20000)/10
Building dep = 6900 per year
What should be the book value of (a) the land and (b) the building at the end of year 2?
Land book value at the end of year 2 = $111000
Building book value at the end of year 2 = 89000-(6900*2) = 75200
Date accounts & explanation debit credit Land a/c (185000*60%) 111000 Building a/c 89000 Cash a/c 200000 (To record purchase)Related Questions
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