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?

Question

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The Answer of 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?

On January 1, 2019, Ginger Company Purchased Land and a Building