Carla Vista Company purchases a patent for $147,200 cash on January 2, 2021. Its legal life is 20 years and its estimated useful life is 8 years. Record amortization expense for the year ended December 31, 2021 Blossom Company purchased real estate for $1,165,000, which included $6,200 in legal fees. It paid $256,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $476,700, a building appraised at $762,720, and fences and other land improvements appraised at $122,580. The building has an estimated useful life of 60 years and a $56,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. Calculate the annual depreciation expense for the building and land improvements assuming Blossom Company uses straight-line depreciation.
Carla Vista Company purchases a patent for $147,200 cash on January 2, 2021. Its legal life is 20 years and its estimated useful life is 8 years.
Record amortization expense for the year ended December 31, 2021
Blossom Company purchased real estate for $1,165,000, which included $6,200 in legal fees. It paid $256,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $476,700, a building appraised at $762,720, and fences and other land improvements appraised at $122,580. The building has an estimated useful life of 60 years and a $56,000 residual value. Land improvements have an estimated 15-year useful life and no residual value.
Calculate the annual
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