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(Solution Download) Bridge City Consulting bought a building and the land on which it is located for $195,000 cash. The


 

 

 

 

 

 

 

Bridge City Consulting bought a building and the land on which

 

it is located for $195,000 cash. The land is estimated to represent

 

70 percent of the purchase price. The company paid $20,000 for

 

building renovations before it was ready for use.

 

 

 

 

 

 

 

 

 

 

 

 

 

Required:

 

2.

 

Prepare the journal entry to record all expenditures. Assume

 

that all transactions were for cash and they occurred at the start

 

of the year.

 

 

 

 

 

 

 

 

 

3.

 

Compute straight-line depreciation on the building at the end of

 

one year, assuming an estimated 10-year useful life and a $21,500

 

estimated residual value

 

 

 

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