Problem 7-7A (Algo) Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7- 5) [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $79,000 Accumulated Depreciation Book Value 0 $79,000 444,000 $(159,840) 284,160 221,600 170,000 (46,800) (68,000) 174,800 102,000 • Stevens purchased all the assets at the beginning of 2022. The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. ⚫ The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. • • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). Problem 7-7A (Algo) Part 1 Required: .For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not lepreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record depreciation of the building. >
Problem 7-7A (Algo) Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7- 5) [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $79,000 Accumulated Depreciation Book Value 0 $79,000 444,000 $(159,840) 284,160 221,600 170,000 (46,800) (68,000) 174,800 102,000 • Stevens purchased all the assets at the beginning of 2022. The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. ⚫ The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. • • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). Problem 7-7A (Algo) Part 1 Required: .For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not lepreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record depreciation of the building. >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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h
![Problem 7-7A (Algo) Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7-
5)
[The following information applies to the questions displayed below.]
Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024:
Land
Building
Cost
$79,000
Accumulated
Depreciation
Book Value
0
$79,000
444,000
$(159,840)
284,160
Equipment
Patent
221,600
(46,800)
174,800
170,000
(68,000)
102,000
• Stevens purchased all the assets at the beginning of 2022.
•
The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no
residual value.
• The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value
of $11,000.
•
The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line
method.
Depreciation and amortization have been recorded for 2022 and 2023 (first two years).
Problem 7-7A (Algo) Part 1
Required:
1. For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not
depreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
Record depreciation of the building.
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec3b75d8-463b-4817-a209-3faa5d08c705%2Ff2cfd0f2-ce30-4acb-b9af-2664d2941693%2Fh41kv63_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 7-7A (Algo) Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7-
5)
[The following information applies to the questions displayed below.]
Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024:
Land
Building
Cost
$79,000
Accumulated
Depreciation
Book Value
0
$79,000
444,000
$(159,840)
284,160
Equipment
Patent
221,600
(46,800)
174,800
170,000
(68,000)
102,000
• Stevens purchased all the assets at the beginning of 2022.
•
The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no
residual value.
• The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value
of $11,000.
•
The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line
method.
Depreciation and amortization have been recorded for 2022 and 2023 (first two years).
Problem 7-7A (Algo) Part 1
Required:
1. For the year ended December 31, 2024 (third year), record depreciation expense for buildings and equipment. Land is not
depreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
Record depreciation of the building.
>
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