Question 2 The Snack Stop had the following long-term asset balances as of January 1, 2018: Accumulated Cost Book Depreciation Value Land $90,000 $90,000 Building 600,000 ($60,000) 540,000 Equipment 200,000 (72,000) 128,000 Patent 80,000 (20,000) 60,000 All of the assets were purchased at the beginning of 2016. The building is depreciated over a 20-year service life using the straight-line method and estimating no residual value. The equipment is depreciated over a 10-year useful life using the double-declining- balance method with an estimated residual value of $10,000. The patent is estimated to have an 8-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization has already been calculated for the first two years. Required: 1. For the year ended December 31, 2018, record depreciation expense for buildings and equipment. Land is not depreciated. [4 marks] 2. For the year ended December 31, 2018, record amortization expense for the patent. 3. Calculate the book value for each of the four long-term assets at December 31, 2018. [4 marks] Principles of Accounting1013