Question

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

Answer 1

Step-by-step 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