Russell Freightway provides freight service. The company’s balance sheet includes Land, Buildings, and Motor-Carrier Equipment. Russell uses a separate accumulated depreciation account for each depreciable asset. During 2012, Russell Freightway completed the following transactions:

Jan 1 Traded in motor-carrier equipment with accumulated depreciation of $85,000 (cost of $132,000) for new equipment with a cash cost of $174,000. Russell received a trade-in allowance of $64,000 on the old equipment and paid the remainder in cash.

Jan 1 Sold a building that cost $570,000 and had accumulated depreciation of $240,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $80,000. Russell received $100,000 cash and a $590,000 note receivable.

Oct 31 Purchased land and a building for a cash payment of $900,000. An independent

appraisal valued the land at $331,200 and the building at $703,800.

Dec 31 Recorded depreciation as follows:

New motor-carrier equipment has an expected useful life of 800,000 miles and an estimated residual value of $22,000. Depreciation method is the units-of-production method. During the year, Russell drove the truck 100,000 miles. Depreciation on buildings is straight-line. The new building has a 40-year useful life and a residual value equal to $60,000.

Requirement

1. Record the transactions in Russell Freight way’s journal. (Round your depreciation expense to the nearest whole dollar.)