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vodka [1.7K]
3 years ago
6

Shahia Company bought a building for $89,000 cash and the land on which it was located for $107,000 cash. The company paid trans

fer 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
Business
1 answer:
kramer3 years ago
8 0

Answer:

Explanation:

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

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