Brown Freightway provides freight service. The company’s balance sheet includes Land, Buildings, and Motor-Carrier Equipment. Brown Freightway uses a separate accumulated depreciation account for each depreciable asset. During 2018, Brown Freightway completed the following transactions:

Jan 1 Traded in motor-carrier equipment with accumulated depreciation of $84,000 (cost of $130,000) for new equipment with a cash cost of $149,000. Brown Freightway received a trade-in allowance of $54,000 on the old equipment and paid the remainder in cash.

Jul 1 Sold a building that cost $560,000 and had accumulated depreciation of $260,000 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 $40,000. Brown Freightway received $100,000 cash and a $340,000 note receivable.

Oct 31 Purchased land and a building for a cash payment of $350,000. An independent appraisal valued the land at $115,500 and the building at $269,500. 

Dec 31 Recorded depreciation as follows:

New motor-carrier equipment has an expected useful life of 1,000,000 miles and an estimated residual value of $19,000. Depreciation method is the units-of-production method. During the year, Brown Freightway drove the equipment 150,000 miles. Depreciation on buildings is straight-line. The new building has a 40-year useful life and a residual value equal to $35,000.

Requirement

Record the transactions in Brown Freightway’s journal. Round your depreciation expense to the nearest whole dollar.