E8-3 Computing and Recording Cost and Depreciation of Assets (Straight-Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] Shahia Company bought a building for $84,000 cash and the land on which it was located for $113,000 cash. The company paid transfer costs of $12,000 ($8,000 for the building and $4,000 for the land). Renovation costs on the building were $24,000.

E8-3 Part 2

2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $7,000 estimated residual value.

	Straight-line depreciation

E8-3 Part 3

3. What would be the net book value of the property (land and building) at the end of year 2? (Amounts to be deducted should be indicated by a minus sign.)

Net book value