Solich Sandwich Shop had the following long-term asset balances as of December 31, 2012:
________________Cost__________Accumulated...........................Book
............................................................Depreciation...........................value
Land......................$85,000..........................-$85,000
Building.............450,000.................$(85,500)364,500
Equipment...........250,000...............(48,000)202,000
Patent....................200,000...............(80,000)120,000
Solich purchased all the assets at the beginning of 2010 (3 years ago). The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 10-year useful life using the straight-line method with an estimated residual value of 610,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method.
Required:
1. For the year ended December 31, 2012, record depreciation expense for buildings and equipment Land is not depreciated.
2 For the year ended December 31, 2012, record amortization expense for the patent.
3. Calculate the book value for each of the four long-term assets at December 31, 2012.