Determine the net of accumulated depreciation

Question

Response to the following problem:

Gracious Hospital purchased the following plant assets on January 1, 20X1:

                               Cost                       Salvage Value        Estimated Useful Life (Years)

Land                       $ 1oo, 000

Buildings                 8,000,000                 $1,600,0oo                        40

Equipment              4,500,000                   5oo,000                            20

 

Required:

(1) Assuming straight-line depreciation, what is the depreciation expense for 20X4?

(2) At what amount, net of accumulated depreciation, would these assets be presented in the balance sheet of the hospital at December 31, 20X6?