1. Suppose iHeartMedia, Inc. purchases a new advertising structure for $100,000 on August 1. The residual value of the structure is $4,000 and the useful life is 10 years. How would iHeartMedia record the depreciation expense on December 31 in the first year of use? What about the second year of use?

2.What would be the book value of the structure at the end of the first year? What would be the book value of the structure at the end of the second year?

3. What would be the impact on iHeartMedia, Inc. financial statements if they failed to record the adjusting entry related to the structure?

ogether It Case 3-1 Before you begin this assignment, rewiew the Tying it Al Rogether feature in the chapter iHeartMedia, Inc. in their annual report for the year ending December 31, 2015, state that the plant assets reported on its bal- ance sheet includes the following Plant Asset Buildings and improvernents Structures Towers, transmitters, and studio equipment Furniture and other equipment Depreciation is computed using the straight-line method Useful Life 10 to 39 years 5 to 15 years 7 to 20 years 3 to 20 years Requirements 1 Suppose Heatleda, inc purchases a new adeteng structure for S100,000 on August ' Teesdal walue of the structues $4,000 and the useful life s 10 years. How would iHeartMledia record the depreciation expense on December 31 in the fist yeur of use? What about the second year of use? 2. What would be the book value of the structue at the end of the first year? What would be the book value of the structure at the end of the second year? 3. What would be the impat on HeartMedia, Inc financial statements f they faled to necord the adjusting entry related to the structure