A) Bridge City Consulting bought a building and the land on which it is located for $165,000 cash. The land is estimated to represent 50 percent of the purchase price. The company paid $30,000 for building renovations before it was ready for use.

E9-2 Part 3 and 4

3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $19,500 estimated residual value. (Do not round intermediate calculations.)
4. What should be the book value of (a) the land and (b) the building at the end of year 2?

B)

Equipment (estimated residual value, $9,000)	$	53,000
Accumulated Depreciation (straight-line, one year)		4,000

Required:

Based on the data given, compute the estimated useful life of the equipment.

C)

Net revenue	$	66,225			$	109,249			$	158,500			$	155,910
Net property, plant, and equipment		4,800				7,780				15,460				13,400

Required:

1. Compute Papaya's fixed asset turnover ratio for 2014, 2015, and 2016.