Bridge City bought a building and land on which it is located for $182,000 cash. The land is estimated to represent 70% of the purchase price. The company paid $22,000 for building renovations before it was ready for use. 1. Explain how the renovation coste arn +n be accounted for (capitalized or expensed?). 2. Give the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. 3. Compute straight line depreciation on the building at the end of one year, assuming an estimated 12 year useful life and a 4600 estimated residual value. 4.1