Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] Shahia Company bought a building for $87,000 cash and the land on which it was located for $123,000 cash. The company paid transfer costs of $15,000 ($6,000 for the building and $9,000 for the land). Renovation costs on the building before it could be used were $32,000. E8-3 Part 2 2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $18,000 estimated residual value.

Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] Shahia Company bought a building for $87,000 cash and the land on which it was located for $123,000 cash. The company paid transfer costs of $15,000 ($6,000 for the building and $9,000 for the land). Renovation costs on the building before it could be used were $32,000. E8-3 Part 2 2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $18,000 estimated residual value.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

Required information
E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-
Line Depreciation) LO8-2, 8-3
[The following information applies to the questions displayed below.]
Shahia Company bought a building for $87,000 cash and the land on which it was located for
$123,000 cash. The company paid transfer costs of $15,000 ($6,000 for the building and $9,000
for the land). Renovation costs on the building before it could be used were $32,000.
E8-3 Part 2
2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a
$18,000 estimated residual value.
Straight-line depreciation

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