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.

Required:

2.

Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

.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.

4.	What should be the book value of the land and building at the end of year 2?