E9-2 (Algo) Computing and Recording a Basket Purchase and Straight-Line Depreciation [LO 9-2, LO 9-3] [The following information applies to the questions displayed below] Bridge City Consulting bought a building and the land on which it is located for $165,000 cash. The land is estimated to represent 50 percent of the purchase price. The company paid $30,000 for building renovations before it was ready for use. E9-2 (Algo) Part 3 and 4 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $19,500 estimated residual value. (Do not round intermediate calculations.)
E9-2 (Algo) Computing and Recording a Basket Purchase and Straight-Line Depreciation [LO 9-2, LO 9-3] [The following information applies to the questions displayed below] Bridge City Consulting bought a building and the land on which it is located for $165,000 cash. The land is estimated to represent 50 percent of the purchase price. The company paid $30,000 for building renovations before it was ready for use. E9-2 (Algo) Part 3 and 4 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $19,500 estimated residual value. (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E9-2 (Algo) Computing and Recording a Basket Purchase and Straight-Line Depreciation (LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.)
Bridge City Consulting bought a building and the land on which it is located for $165,000 cash. The land is estimated to
represent 50 percent of the purchase price. The company paid $30,000 for building renovations before it was ready for
use.
E9-2 (Algo) Part 3 and 4
3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $19,500
estimated residual value. (Do not round intermediate calculations.)
4. What should be the book value of (a) the land and (b) the building at the end of year 2?
3 Straight-Line Depreciation
4(a). Land
4(b). Building](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F230f9c1d-9699-4fec-91f6-cea3384643bb%2F34c8f181-d7d9-4fd7-8d17-153718212096%2Fpc04r2g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:red int
E9-2 (Algo) Computing and Recording a Basket Purchase and Straight-Line Depreciation (LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.)
Bridge City Consulting bought a building and the land on which it is located for $165,000 cash. The land is estimated to
represent 50 percent of the purchase price. The company paid $30,000 for building renovations before it was ready for
use.
E9-2 (Algo) Part 3 and 4
3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $19,500
estimated residual value. (Do not round intermediate calculations.)
4. What should be the book value of (a) the land and (b) the building at the end of year 2?
3 Straight-Line Depreciation
4(a). Land
4(b). Building
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