Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Accumulated Depreciation Land Building Equipment Patent Cost $ 92,000 457,000 234,300 235,000 $(164,520) (49,400) (94,000) Book Value $ 92,000 292,480 184,900 141,000 Solich purchased all the assets at the beginning of 2019 (3 years ago). 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 useful life using the straight-line method with an estimated residual value of $12,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020.

Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Accumulated Depreciation Land Building Equipment Patent Cost $ 92,000 457,000 234,300 235,000 $(164,520) (49,400) (94,000) Book Value $ 92,000 292,480 184,900 141,000 Solich purchased all the assets at the beginning of 2019 (3 years ago). 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 useful life using the straight-line method with an estimated residual value of $12,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021:
Accumulated
Depreciation
Land
Building
Equipment
Patent
Cost
$ 92,000
457,000
234,300
235,000
$(164,520)
(49,400)
(94,000)
Book Value
$ 92,000
292,480
184,900
141,000
Solich purchased all the assets at the beginning of 2019 (3 years ago). 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 useful life using the straight-line method with an estimated
residual value of $12,000. The patent is estimated to have a five-year service life with no residual value
and is amortized using the straight-line method. Depreciation and amortization have been recorded for
2019 and 2020.
Required:
1. For the year ended December 31, 2021, 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 fie

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