2. Nico's Nice Homes purchased an apartment building on Jan 1, 2010. At the time, the building was expected to have a useful life of 25 years with a residual value of $100.000 The building's original cost was $900,000. Nico has a December 31 year end. During December 2018. Nico had the following events and transactions related to the building. All transactions are for cash. 1. Patched up some holes in the walls in the common areas at a cost of $2,000. 2. Repaired the electrical wiring in three suites at a cost of $1.500. 3. Replaced all of the linoleum flooring in the suites with hardwood, installed dishwashers and in-suite laundry facilities in each unit, and made other improvements of total cost of $120,000. As a result, the annual rental revenue has been doubled. 4 Completed structuror repairs to the building at a cost of $100,000. As a result of this work the building life is expected to be 9 years longer than the original estimate. The residual value estimate has been revised to $132.000. Instructions: (a) Calculate the net book value of the building on December 31, 2018. Clearly show your work. Do not reevaluate the amortization expense. (3 marks) (b) Record the 2019 amortization expense using the straight line basis. Clearly show your work above the journal entry. (4 marks) Answers: DATE GENERAL JOURNAL PARTICULARS PAGE P.R DEBIT CREDIT