7-22

Required information 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 beiow] 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). Problem 7-7A (Algo) Part 3 3. Calculate the book value for each of the four long-term assets at December 31,2024