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Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent

Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use.

  1. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $3,000 estimated residual value. (Do not round intermediate calculations.)
  2. What should be the book value of (a) the land and (b) the building at the end of year 2?

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Required information [The following information applies to the questions displayed below.] Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10 -year useful life and a $3,000 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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