70 percent of the purchase price. The company paid $12,000 for building renovations before it was ready for use. Required: 1. The renovation costs should be capitalized. Faise True 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start o the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Compute straight-line depreciation on the bullding at the end of one year, assuming an estimated twelve-year useful life and $3,600 estimated residual value. 4. What should be the book value of the land and building at the end of year 2 ? 70 percent of the purchase price. The company paid $12,000 for building renovations before it was ready for use. Required: 1. The renovation costs should be capitalized. Faise True 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start o the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Compute straight-line depreciation on the bullding at the end of one year, assuming an estimated twelve-year useful life and $3,600 estimated residual value. 4. What should be the book value of the land and building at the end of year 2