Bridge City Consulting bought a building and the land on which it is located for $$115,000$ cash. The land is estimated to represent $50$ percent of the purchase price. The company paid $$8,000$ for building renovations before it was ready for use.

Required:

$1$ Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. $2$ Compute straight$-$line depreciation on the building at the end of one year, assuming an estimated $10-$year useful life and a $$2,000$ estimated residual value. $($Do not round intermediate calculations.$)$

$3$ What should be the book value of $($a$)$ the land and $($b$)$ the building at the end of year $2?$