Shahia Company bought a building for $89,000 cash and the land on which it was located for $107,000 cash. The company paid transfer costs of $10,000 ($7,000 for the building and $3,000 for the land). Renovation costs on the building before it could be used were $16,000

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Business

Brodie Krause

30 October, 09:32

Shahia Company bought a building for $89,000 cash and the land on which it was located for $107,000 cash. The company paid transfer costs of $10,000 ($7,000 for the building and $3,000 for the land). Renovation costs on the building before it could be used were $16,000

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Giovanni Gallagher · Answer 1

The net book value of the property (land and building) at the end of year 2

Building (89,000 + 7,000 + 16,000) 112,000

Less; Depreciation for 2 years (10,200*2) (20,400) 91,600

Land (107,000 + 3,000) 110,000

Net book value of property 201,600