Question
Solich Sandwich Shop had the following long-term asset balances as of December 31, 2018: Cost Accumulated Depreciation Book Value Land $ 77,000 $ 77,000 Building
Solich Sandwich Shop had the following long-term asset balances as of December 31, 2018:
| Cost | Accumulated Depreciation | Book Value | ||
| Land | $ 77,000 | $ 77,000 | ||
| Building | 442,000 | $(83,980 | ) | 358,020 |
| Equipment | 245,000 | (46,400 | ) | 198,600 |
| Patent | 160,000 | (64,000 | ) | 96,000 |
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 10-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 2016 and 2017.
1. Calculate the book value for each of the four long-term assets at December 31, 2018.
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