Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021:
Land
Building
Equipment
Patent
. Cost
$ 93,000
458,000
211,400
240,000
Accumulated
Depreciation Book Value
$ 93,000
$(87,020) 370,980
(49,600) 161,800
(96,000) 144,000
Solich purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 20-year
service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated
over a 8-year useful life using the straight-line method with an estimated residual value of $13,000. The patent is
estimated to have a five-year service life with no residual value and is amortized using the straight-line method.
Depreciation and amortization have been recorded for 2019 and 2020.
Problem 7-7A Part 3
3. Calculate the book value for each of the four long-term assets at December 31, 2021