Adjusting for depreciation

a. Chika Company purchases \($20,000\) of equipment on January 1, 2008. The equipment is expected to last five years and be worth \($2,000\) at the end of that time. Prepare the entry to record one year’s depreciation expense for the equipment as of December 31, 2008. Use the straight-line method.

b. Madra Company purchases \($10,000\) of land on January 1, 2008. The land is expected to last indefinitely.What depreciation adjustment, if any, should be made with respect to the Land account as of December 31, 2008?