Shahia Company bought a building for $73,000 cash and the land on which it was located for $124,000 cash. The company paid transfer costs of $16,000 ($8,000 for the building and $8,000 for the land). Renovation costs on the building before it could be used were $17,000.

2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $16,000 estimated residual value. Straight-line depreciation