3. Calculate the book value for each of the four long-term assets at December 31, 2024. STEVENS SANDWICH SHOP December 31, 2024 Land Building Equipment Patent Book value ! Required information [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 $82,000 Accumulated Depreciation Book Value 0 $82,000 447,000 226,300 185,000 $(160,920) 286,080 (47,400) 178,900 (74,000) 111,000 • 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 $13,000. • 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).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
3. Calculate the book value for each of the four long-term assets at December 31, 2024.
STEVENS SANDWICH SHOP
December 31, 2024
Land
Building
Equipment
Patent
Book value
Transcribed Image Text:3. Calculate the book value for each of the four long-term assets at December 31, 2024. STEVENS SANDWICH SHOP December 31, 2024 Land Building Equipment Patent Book value
!
Required information
[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
$82,000
Accumulated
Depreciation
Book Value
0
$82,000
447,000
226,300
185,000
$(160,920)
286,080
(47,400)
178,900
(74,000)
111,000
• 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 $13,000.
• 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).
Transcribed Image Text:! Required information [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 $82,000 Accumulated Depreciation Book Value 0 $82,000 447,000 226,300 185,000 $(160,920) 286,080 (47,400) 178,900 (74,000) 111,000 • 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 $13,000. • 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).
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education