During the current year ending December 31, Nguyen Corporation completed the following transactions:

a. On January 1, purchased a license for $7,200 cash (estimated useful life, four years).

b. On January 1, repaved the parking lot of the building leased from H. Lane. The cost was $17,800; the estimated useful life was five years with no residual value. The lease will expire in 10 years. (Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.)

c. On July 1, purchased another business for $120,000 cash. The transaction included $115,000 for the assets and $24,000 for the liabilities assumed by Nguyen. The remainder was goodwill with an indefi¬nite life.

d. On December 31, sold Machine A for $6,000 cash. Original cost, $21,500; accumulated depreciation (straight line) to December 31 of the prior year, $13,500 ($3,500 residual value and four-year life).

e. Total expenditures during the current year for ordinary repairs and maintenance were $6,700.

f. On December 31, paid $8,000 for a complete reconditioning of Machine B. Original cost, $18,000; accumulated depreciation to December 31 of the prior year, $12,000 (based on the straight-line method using a $2,000 residual value and four-year life).

Required:

1. For each of these transactions, indicate the accounts, amounts, and effects (+ for increase and - for decrease) on the accounting equation. Use the following structure:

DateAssets=Liabilities+ Stockholders' Equity

2. For each of these assets, except the assets not detailed in (c), compute depreciation and amortization to be recorded at the end of the current year on December 31.