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  3. carla vista farms purchased real estate for $1,200

Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It...

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Accounting

Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid $254,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $483,120, a building appraised at $738,100, and fences and other land improvements appraised at $120,780. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15-year useful life and no residual value.Calculate the annual depreciation expense for the building and land improvements assuming Carla Vista Farms uses straight-line
depreciation. (Round answers to 0 decimal places, e.g.5,275.)
Annual Depreciation Expense
Building
Land Improvements
image

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