7-20

Problem 7-7A (Algo) Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7. 5) [The following information applies to the questions displayed below.] Cheesesteak Sandwich Shop had the following long-term asset balances as of January 1, 2024: - Cheesesteak purchased all the assets at the beginning of 2022. - The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. - The equipment is depreciated over a 8-year service life using the straight-line method with an estimated residual value of $12,000. - The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. - Depreciation and amortization have been recorded for 2022 and 2023 (first two years). roblem 7-7A (Algo) Part 1 equired: For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not epreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)