Information for Blake Corporation€™s property, plant, and equipment for 2016 is:

Depreciation Method and Useful Life
Building: 150%- declining- balance; 25 years.
Machinery and equipment: Straight- line; 10 years.
Automotive equipment: Sum- of- the- years€™- digits; 4 years.
Leasehold improvements: Straight- line.
The residual value of the depreciable assets is immaterial.
Depreciation is computed to the nearest month.
Transactions during 2016 and other information were as follows:
a. On January 2, 2016, Blake purchased a new car for $ 10,000 cash and a trade- in of a 2- year- old car with a cost of $ 9,000 and a book value of $ 2,700. The new car has a cash price of $ 12,000; the market value of the trade-in is not known.
b. On April 1, 2016, a machine purchased for $ 23,000 on April 1, 2011, was destroyed by fire. Blake recovered $ 15,500 from its insurance company.

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Account Balances at January 1, 2016 Debit $150,000 1,200,000 Credit Land Building Accumulated Depreciation Machinery and Equipment Accumulated Depreciation Automotive Equipment Accumulated Depreciation $263,100 250,000 84,600 115,000