Required information

Problem 7-7A Compute depreciation, amortization, and book value of long-term assets (LO7-4, 7-5)

[The following information applies to the questions displayed below.]

Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021:

					Accumulated
	Cost				Depreciation				Book Value
Land	$	76,000							$	76,000
Building		441,000			$	(158,760	)			282,240
Equipment		221,900				(46,200	)			175,700
Patent		155,000				(62,000	)			93,000

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 $14,000. 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.

Problem 7-7A Part 1

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 field.)