Question
Solich Sandwich Shop had the following long-term asset balances as of December 31, 2018: Solich purchased all the assets at the beginning of 2016 (3
Solich Sandwich Shop had the following long-term asset balances as of December 31, 2018:
Solich purchased all the assets at the beginning of 2016 (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 $11,000. 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 2016 and 2017.
Accumulated Depreclation Cost Book Value $ 84,000 363,690 154,400 117000 $84,000 Land Bullding Equlpment Patent 449,000 202,200 195,000 (85.310) (47,800) (78,000) Required: 1. For the year ended December 31, 2018, record depreciation expense for buildings and equipment. Land is not depreciated. View transaction list 1 Record the depreciation on the building. 2 Record the depreciation on the equipment. 2. For the year ended December 31, 2018, record amortization expense for the patent. (If no entry is requir View transaction list Journal entry worksheet Record the amortization on the patent. Note: Enter debits before credits. Transaction General Journal Debit Credit 3. Calculate the book value for each of the four long-term assets at December 31, 2018. SOLICH SANDWICH SHOP December 31, 2018 Book value Land Building Equipment PatentStep by Step Solution
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