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Solich Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost Accumulated Depreciation Book Value Land $95,000 0 $95,000 Building 460,000 $(165,600) 294,400 Equipment 235,000 (50,000) 185,000 Patent 250,000 (100,000) 150,000 Solich purchased all the assets at the beginning of 2022. 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 nine-year service life using the straight-line method with an estimated residual value of $10,000. The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). Required: 1. For the year ended December 31, 2024 (third year), 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.) Journal Entry Worksheet: 1. Record depreciation of the building. 2. Record depreciation of the equipment.


Depreciation expense for buildings and equipment for the year ended December 31, 2024 is $112,556. (Debit Depreciation Expense $112,556, Credit Accumulated Depreciation Building $92,000, Credit Accumulated Depreciation Equipment $20,556)

  • Calculate the depreciation for the buildings. A:Depreciation for the building is $92,000 (($460,000/10) x 2).
  • Calculate the depreciation for the equipment. A:Depreciation for the equipment is $20,556 (($235,000-$10,000)/9).