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E$8-3($Algo$)$ Computing and Recording Cost and Depreciation of Assets $($Straight$-$Line Depreciation$)$ LO$8-$

$2,8-3$

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Shahia Company bought a building for $$79,000$ cash and the land on which it was located for $$109,000$ cash. The

company paid transfer costs of $$17,000($ $$7,000$ for the building and $$10,000$ for the land$).$ Renovation costs on the

building before it could be used were $$18,000.$

E$8-3$ Part $2$

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

residual value.