E$9-2($Algo$)$ Computing and Recording a Basket Purchase and Straight$-$Line Depreciation $[$LO $9-2,$ LO $9-3]$

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Bridge City Consulting bought a building and the land on which it is located for $$140,000$ cash. The land is estimated to represent $70$ percent of the purchase price. The company paid $$10,000$ for building renovations before it was ready for use.

E$9-2($Algo$)$ Part $3$ and $4$

Compute straight$-$line depreciation on the building at the end of one year, assuming an estimated $10-$year useful life and a $$15,000$ estimated residual value. $($Do not round intermediate calculations.$)$

What should be the book value of $($a$)$ the land and $($b$)$ the building at the end of year $2?$

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