Richmond Inc. is preparing its balance sheet at December 31, 2005. The following assets are to be report! '

a. Building, purchased 12 years ago (counting 2005): original cost, $630,000; estimated useful life, 20 years from date of purchase; and no residual value.

b. Land, purchased 12 years ago (counting 2005): original cost, $1 12,000.
Required: 1. Show how the two assets should be reported on the balance sheet. What is the total book value of the property, plant, and equipment? 2. What amount of depreciation expense should be reported on the 2005 income statement? Show computations.