Exercise 7-44 Cost of Tangible Capital Assets Mooney Sounds, a local stereo retailer, needed a new store because it had outgrown the leased space it had used for several years. Mooney acquired and remodelled a former grocery store. As a part of the acquisition, Mooney incurred the following costs: $277,400 83,580 Cost of grocery store Cost of land (on which the grocery store is located) New roof for building Lumber used for remodelling 74,000 23,200 Paint 515 Wire and electrical supplies 4,290 New doors 6,400 New windows 3,850 Wages paid to workers for remodelling 12,500 Additional inventory purchased for grand opening sale 45,300 Required: 1. Determine the cost of the land and the building. Land 83,580 V Building 447,455 X Cornerstone Exercise 7-19 (Algorithmic) Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $55,500 on January 1, 2018. The truck is expected to have a $1,700 residual value at the end of its 5-year useful life. Irons uses the straight-line method of depreciation. Required: Prepare the journal entry to record depreciation expense for 2018 and 2019. If required, round to the nearest dollar. 2018 Dec. 31 Depreciation Expense 10,660 X Accumulated Depreciation 10,660 X (Record straight-line depreciation expense) 2019 Dec. 31 Depreciation Expense 10,660 Accumulated Depreciation 10,660 X (Record straight-line depreciation expense)