During 2018, Paul Sing Inc. paid $200,000 for land and built a restaurant in Surrey, BC. Prior to construction, the City of Surrey charged Paul Sing Inc. $2,250 for a building permit, which Paul Sing Inc. paid. Paul Sing Inc. also paid $20,000 for architects fees. The construction cost of $700,000 was financed by a long-term note payable issued on January 1, 2018, with interest cost of $29,000 paid at December 31, 2018. The building was completed September 30, 2018. Paul Sing Inc. will depreciate the building by the straight-line method over 25 years, with an estimated residual value of $60,000.