im not quite getting the conept of this question?

Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The company paid transfer costs of $12,000 ( $5,000 for the building and $7,000 for the land). Renovation costs on the building before it could be used were $21,000. 2. Compute straight-line depreciation at the end of one year, assuming an estimated 10 -year useful life and a $5,000 estimated esidual value