Part C. Depreciation On January 2, 2012, Dickens Company purchased a building and land for $740,000. The most recent appraisal values for the building and the land are $520,000 and $280,000, respectively. The building has an estimated useful life of 20 years and a salvage value of $60,000. 1. Assuming cash transactions and straight-line depreciation, prepare journal entries to record: Purcase of the building and land on January 2, 2012. a. b. Depreciation expense on December 31, 2012. 2. Assume that after four years the land and building were sold for $585,000. Prepare the journal entry to record the sale.
Part C. Depreciation On January 2, 2012, Dickens Company purchased a building and land for $740,000. The most recent appraisal values for the building and the land are $520,000 and $280,000, respectively. The building has an estimated useful life of 20 years and a salvage value of $60,000. 1. Assuming cash transactions and straight-line depreciation, prepare journal entries to record: Purcase of the building and land on January 2, 2012. a. b. Depreciation expense on December 31, 2012. 2. Assume that after four years the land and building were sold for $585,000. Prepare the journal entry to record the sale.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 26E
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