E7-4 (Algo) Computing and Recording Cost and Depreciation of Assets in a Basket Purchase (StraightLine Depreciation) LO7-2, 7-3 Zeidler Company bought a building and the land on which the bullding is located for a total cash price of $186,500. The company paid transfer costs of $3,700. Renovation costs on the building were $19,540. An independent appraiser provided market values for the land, $280,000, and buliding, $1,120,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Journal entry worksheet Record purchase of building and land. Note: Enter debits before credits. 3. Compute depreciation of the building at the end of one year, using the straight-line method. Assume an estimated useful life of 12 years and an estimated residual value of $15,700. 4. What would be the carrying amount of the property (bullding and land) at the end of year 2