2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactionswere for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)NoTransactionDepreciationGeneral JournalDebit3. Compute depreciation of the building at the end of one year, using the straight-line method. Assume an estimated useful life of 12years and an estimated residual value of $14,800.Carrying amountCredit4. What would be the carrying amount of the property (building and land) at the end of year 2? E8-4 Computing and Recording Cost and Depreciation of Assets in a Basket Purchase (Straight-LineDepreciation) LO8-2, 8-3Zeidler Company bought a building and the land on which the building is located for a total cash price of $182,000. The company paidtransfer costs of $2,800. Renovation costs on the building were $34,960. An independent appraiser provided market values for theland, $190,000, and building, $760,000 before renovation.Required:1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.)ItemBuildingLandNoApportioned RenovationcostcostAnswer is complete and correct.$$ 147,840✔ S 34,960 S36,960✔184,800TransactionPurchase costS2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactionswere for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)General Journal182,800✔36.960219,760DebitCredit

Name: 2. Prepare the journal entry to record the purchase of the building a
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Description: 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactionswere for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/

Introduction: Depreciation is an accounting concept for allocating the cost of a tangible or…

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Accounting

2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Depreciation General Journal Debit 3. Compute depreciation of the building at the end of one year, using the straight-line method. Assume an estimated useful life of 12 years and an estimated residual value of $14,800. Carrying amount Credit 4. What would be the carrying amount of the property (building and land) at the end of year 2?

2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Depreciation General Journal Debit 3. Compute depreciation of the building at the end of one year, using the straight-line method. Assume an estimated useful life of 12 years and an estimated residual value of $14,800. Carrying amount Credit 4. What would be the carrying amount of the property (building and land) at the end of year 2?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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how to find the book value for december 31 and accumulated depreciation