China Express purchased land for $140,000. Prior to construction on the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below:

Land clearing costs	$ 5,000
Architect fees (for new building)	30,000
Legal fees for title investigation of land	1,000
Property taxes on land (for the first year)	2,500
Building construction costs	440,000

Required: Determine the amounts that should be recorded in the land and the new building accounts.

2. Diamond Autobody purchased some new equipment. The new equipment cost $90,000. The company estimates the equipment will have a residual value of $10,000. Cheetah Copy also estimates it will use the equipment for four years or about 5,000 total hours.

Required:

Prepare a depreciation schedule for three years using the following methods:

1. Straight-line. 2. Double-declining-balance. 3. Activity-based. Actual use per year was as follows:

Year	Hours Used
1	1,200
2	1,400
3	1,500
4	1,100

3. The Snack Stop had the following long-term asset balances as of January 1, 2015:

		Cost		Accumulated Depreciation		Book Value
Land		$90,000				$90,000
Building		600,000		($60,000)		540,000
Equipment		200,000		(72,000)		128,000

All of the assets were purchased at the beginning of 2013. The building is depreciated over a 20-year service life using the straight-line method and estimating no residual value. The equipment is depreciated over a 10-year useful life using the double-declining-balance method with an estimated residual value of $10,000. Depreciation has already been calculated for the first two years.

Required:

1. For the year ended December 31, 2015, record depreciation expense for buildings and equipment. Land is not depreciated.

2. Calculate the book value for each of the four long-term assets at December 31, 2015.