Problem 7-7A Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7-5) [The following information applies to the questions displayed below.] Solich Sandwich Shop had the following long-term asset balances as of December 31, 2018: Accumulated Depreciation Land Building Equipment Patent Cost $ 95,000 460,000 235,000 250,000 $(165,600) (50,000) (100,000) Book Value $ 95,000 294,400 185,000 150,000 Solich purchased all the assets at the beginning of 2016 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a nine-year useful life using the straight-line method with an estimated residual value of $10,000. The patent is estimated to have a five- year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2016 and 2017. Problem 7-7A Part 1 Required: 1. For the year ended December 31, 2018, record depreciation expense for buildings and equipment. Land is not depreciated. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the depreciation on the building. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Depreciation expense Accumulated depreciation Required: 1. For the year ended December 31, 2018, record depreciation expense for buildings and equipment. Land is not depreciated. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the depreciation on the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Depreciation expense Accumulated depreciation