Question
Cost Accumulated Depreciation Book Value Land $ 69,000 $ 69,000 Building 544,000 $(195,840 ) 348,160 Equipment 131,600 (26,800 ) 104,800 Patent 85,000 (34,000 ) 51,000
Cost | Accumulated Depreciation | Book Value | ||
Land | $ 69,000 | $ 69,000 | ||
Building | 544,000 | $(195,840 | ) | 348,160 |
Equipment | 131,600 | (26,800 | ) | 104,800 |
Patent | 85,000 | (34,000 | ) | 51,000 |
Togo's purchased all the assets at the beginning of 2013 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 9-year useful life using the straight-line method with an estimated residual value of $11,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method.
1. Record the depreciation on the building.
2. Record the depreciation on the equipment.
3. Calculate the book value for each of the four long-term assets at December 31, 2015.
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