Required information Required information

Problem $7-7($Static$)$ Calculate depreciation of property and equipment and amortization of intangible

assets $($LO$7-4,7-5)$

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

Solich Sandwich Shop had the following long$-$term asset balances as of January

$1,2026$:

Additional information:

Solich purchased all the assets at the beginning of $2024.$

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 service life using the straight$-$line

method with an estimated residual value of $$10,000.$

The patent is estimated to have a $5-$year service life with no residual value and

is amortized using the straight$-$line method.

Depreciation and amortization have been recorded for $2024$ and $2025($first $2$

years$).$

Problem $7-7($Static$)$ Part $1$

Required:

For the year ended December $31,2024($third year$),$ determine the financial statement

effects of the depreciation of buildings and equipment. Land is not depreciated.

Complete this question by entering your answers in the tabs below.

Equipment

Determine the financial statement effects of the depreciation of the building.

Note: Amounts to be deducted should be indicated by a minus sign. Required information

Problem $7-7($Static$)$ Calculate depreciation of property and equipment and amortization of intangible

assets $($LO$7-4,7-5)$

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

Solich Sandwich Shop had the following long$-$term asset balances as of January

$1,2026$ :

Additional information:

Solich purchased all the assets at the beginning of $2024.$

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 service life using the straight$-$line

method with an estimated residual value of $$10,000.$

The patent is estimated to have a $5-$year service life with no residual value and

is amortized using the straight$-$line method.

Depreciation and amortization have been recorded for $2024$ and $2025($first $2$

years$).$

Problem $7-7($Static$)$ Part $1$

Required:

For the year ended December $31,2024($third year$),$ determine the financial statement

effects of the depreciation of buildings and equipment. Land is not depreciated.

Complete this question by entering your answers in the tabs below.

Problem $7-7($Static$)$ Calculate depreciation of property and equipment and amortization of intangible

assets $($LO$7-4,7-5)$

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

Solich Sandwich Shop had the following long$-$term asset balances as of January

$1,2026$:

Additional information:

Solich purchased all the assets at the beginning of $2024.$

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 service life using the straight$-$line

method with an estimated residual value of $$10,000.$

The patent is estimated to have a $5-$year service life with no residual value and

is amortized using the straight$-$line method.

Depreciation and amortization have been recorded for $2024$ and $2025($first $2$

years$).$

Problem $7-7($Static$)$ Part $1$

Required:

For the year ended December $31,2024($third year$),$ determine the financial statement

effects of the depreciation of buildings and equipment. Land is not depreciated.

Complete this question by entering your answers in the tabs below.

Equipment

Determine the financial statement effects of the depreciation of the building.

Note: Amounts to be deducted should be indicated by a minus sign.