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Required information [The following information applies to the questions displayed below.] Solich Sandwich Shop had the following long-term asset balances as of December 31,
Required information [The following information applies to the questions displayed below.] Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Land Building Equipment Patent Cost $ 93,000 Accumulated Depreciation Book Value $ 93,000 458,000 211,400 240,000 $(87,020) 370,980 (49,600) (96,000) 161,800 144,000 Solich purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 8- year useful life using the straight-line method with an estimated residual value of $13,000. 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 2019 and 2020.
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