The Snack Stop had the following long-term asset balances as of January 1, 2015:

All of the assets were purchased at the beginning of 2013. The building is depreciated over a 20-year service life using the straight-line method and estimating no residual value. The equipment is depreciated over a 10-year useful life using the double-declining-balance method with an estimated residual value of $10,000. The patent is estimated to have an 8-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization has already been calculated for the first two years.

Required:
1. For the year ended December 31, 2015, record depreciation expense for buildings and equipment. Land is not depreciated.
2. For the year ended December 31, 2015, record amortization expense for the patent.
3. Calculate the book value for each of the four long-term assets at December 31,2015.

Transcribed Image Text:

Accumulated Book Value S90,000 540,000 128,000 60.000 Depreciation ost 90,000 600,000 200,000 80,000 an Building (S60,000) (72,000) (20,000) quipment Patent