Computing and Recording Cost and Depreciation of Assets $($Straight$-$Line Depreciation$)$

Shahia Company bought a building for $$382,000$ cash and the land on which it was located for $$107,000$

cash. The company paid transfer costs of $$9,000($ $$3,000$ for the building and $$6,000$ for the land$).$ Reno$-$

vation costs on the building before it could be used were $$21,000.$

Required:

Give the journal entry to record the purchase of the property, including all relevant expenditures.

Assume that all transactions were for cash and that all purchases occurred at the start of the year.

Compute straight$-$line depreciation at the end of one year, assuming an estimated $10-$year useful life

and a $$15,000$ estimated residual value.

What would be the net book value of the property $($land and building$)$ at the end of Year $2?$