1) Prepare the journal entry to record the purchase of the property, including all expenditures. Assume that all transactions were for cash and that all purchases 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.)

Record the purchase of property, including all expenditures, paid with cash

Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $14,000 estimated residual value.

Straight-Line Depreciation:

What would be the net book value of the property (land and building) at the end of year 2? (Amounts to be deducted should be indicated by a minus sign.)