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Question - During 2018, Liang's Book Store paid $485,000 for land and built a store in Cleveland, Ohio. Prior to construction, the city of Cleveland charged Liang's $1,700 for a building permit, which Liang's paid. Liang's also paid $15,700 for architect's fees. The construction cost of $705,000 was financed by a long-term note payable, with interest costs of $30,040 paid at the completion of the project. The building was completed June 30, 2018. Liang's depreciates the building using the straight-line method over 35 years, with estimated residual value of $340,000.
Debit Credit
Land 485000
Cash 485000
What is the Depreciation Expense (building)?
What is the Accumulated Depreciation (building)?
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