Question
Bridge City Consulting bought a building and the land on which it is located for $140,000 cash. The land is estimated to represent 70 percent
Bridge City Consulting bought a building and the land on which it is located for $140,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. |
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3. | Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $15,000 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? |
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