Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

Bridge City Consulting bought a building and the land on which it is located for $$155,000$ cash. The land is estimated to represent $70$ percent of the purchase price. The company paid $$10,000$ for building renovations before it was ready for use.

Compute straight$-$line depreciation on the building at the end of one year, assuming an estimated $10-$year useful life and a $$16,500$ estimated residual value. $($Do not round intermediate calculations.$)$

What should be the book value of $($a$)$ the land and $($b$)$ the building at the end of year $2?$