Question

During 2014, Liang's Bookstore paid $481,000 for land and built a store in Detroit. Prior to construction, the city of Detroit charged Liang's $1100 for a building's permit which Liang's paid. Liang's also paid $15100 for architect's fees. The construction cost of $675,000 was financed by a long term note payable with interest cost of $28080 paid at completion of the project. The building was completed June 30, 2014. Liang's depreciates the building by the straight line method over 35 years with estimated residual value of $334,000.

Journalize depreciation on the building for 2014.

Answer 1

Building to depreciation