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Bluebottle purchases a warehouse for $9 million on 4/1/2020. In addition to the $9 million purchase price, Bluebottle paid $500,000 in attorney's and broker's fees
Bluebottle purchases a warehouse for $9 million on 4/1/2020. In addition to the $9 million purchase price, Bluebottle paid $500,000 in attorney's and broker's fees for the transaction and paid $500,000 to prepare the warehouse for use in its business. Further assume the warehouse has a salvage value of $2 million and estimated useful life of 20 years. In a separate transaction, on July 1st, 2020, Bluebottle purchased vacant land at a cost of $5 million. Bluebottle estimates the land has a useful life of 50 years and no salvage value. Bluebottle uses the straight-line depreciation method to compute depreciation for all relevant plant assets. In your handwritten work, provide the following information for each of the assets (please show your work for partial credit): Building Depreciation Expense for 2020 Accumulated Depreciation as of 12/31/2021 Net Book Value as of 12/31/2021 Land Depreciation Expense for 2020 Accumulated Depreciation as of 12/31/2021 Net Book Value as of 12/31/2021
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