Essay
On January 1, 2019, Ginger Company purchased land and a building for a total cash price of $6,900,000. Individually, the land was appraised at $2,250,000 and the building at $5,250,000. The buildings estimated useful life is 25 years and its estimated salvage value is $300,000.
Required:
a. Prepare the journal entry to record the purchase of land and building on January 1, 2019.
b. What is the 2019 depreciation expense on the building, assuming that double declining-balance depreciation is used?
Correct Answer:
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Land: ($2,250,000 / $7,500,000) x ($6,9...View Answer
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Correct Answer:
Verified
Land: ($2,250,000 / $7,500,000) x ($6,9...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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