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: Cost Accumulated Depreciation Book Value Land Building Equipment Patent $ 77,000 $ 77,000 442,000 245,000 160,000 $(83,980) 358,020 (46,400) 198,600 (64,000) 96,000 Solich purchased all the assets at the beginning of 2019 (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 $13,000. 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.) View transaction list Journal entry worksheet 1 2 Record the depreciation on the building. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Depreciation Expense 71,604 Accumulated Depreciation 71,604 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 Record the depreciation on the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Depreciation Expense 23,200 Accumulated Depreciation 23,200 View general journal Record entry Clear entry 2. For the year ended December 31, 2021, record amortization expense for the patent. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the amortization on the patent. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry Problem 7-7A Part 3 3. Calculate the book value for each of the four long-term assets at December 31, 2021. SOLICH SANDWICH SHOP December 31, 2021 Land Building Equipment Patent Book value