The following information is available for Tequila Mockingbird Bar & Grill, which has an accounting year-end of December 31.

1. Land was purchased on December 1, 2019, for $60,000, but it was not placed into use until January 1, 2020. Because the land is located in the middle of town, its estimated use life is 30 years. There is no salvage value for the land. Tequila Mockingbird Bar & Grill would use the straight-line method of depreciation, if applicable.
2. By August 1, 2020, it constructed a new restaurant building used in its operations. It cost $325,000, and was estimated to have a $55,000 salvage value at the end of its 15-year useful life. The straight-line method of depreciation is being used.
3. Kitchen equipment was purchased on September 1, 2021, for $120,000, with an estimated salvage value of $10,000. It was estimated to have a useful life of 10 years, and would function for an estimated 50,000 hours. During 2021 and 2022, it was used for 2,100 hours and 5,200 hours, respectively. The units-of-activity method of depreciation is being used.
4. On February 1, 2022, it purchased a delivery van for its business at a cost of $28,000. It was estimated to have an $4,000 salvage value, and a useful life of 5 years. Double-declining balance is being used.

Accumulated depreciation as of January 1, 2022, is as follows:

• Land: $0 (because it was only put into use on January 1, 2020)
• Building: $7,500
• Kitchen equipment: $4,620
• Delivery van: $0 (because it was not purchased until February 1, 2022)

QUESTIONS:

1. For each asset, what is its depreciation expense for the year ending December 31, 2022? (Make sure to list each asset separately.) (1.5 points per asset)
2. What is the net book value of each fixed asset as of December 31, 2022? (Remember, net book value equals original cost minus accumulated depreciation.) (Make sure to list each asset separately.) (0.5 points per asset)

SPECIFIC INSTRUCTIONS:

• Round all answers to the nearest dollar.
• You must show all of your work. If you do not show your work, you will not receive any points for this question, even if you have the correct answer.