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

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

Part $2$ of $2$

Bridge City Consulting bought a building and the land on which it is located for $$150,000$ cash. The land is estimated to represent $60$ percent of the purchase price. The company paid $$20,000$ for building renovations before it was ready for use.

$1\mathrm{.}42$

points

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

$3.$ Compute straight$-$line depreciation on the building at the end of one year, assuming an estimated $10-$year useful life and a $$8,000$ estimated residual value. $($Do not round intermediate calculations.$)$

$4.$ What should be the book value of $($a$)$ the land and $(b)$ the building at the end of year $2?$

Answer is complete but not entirely correct.

$\backslash$table$[[3.$ Straight$-$Line Depreciation,$$,7,200],[4($a$).$ Land,$$,90,000],[4($b$).$ Building,$$8,49,600]]$