This problem continues our accounting for Fitness Equipment Doctor, Inc., from Chapter 7. During 2018, Fitness Equipment Doctor made the following purchases:

• On March 3, Fitness Equipment Doctor, Inc., purchased equipment for $3,600 cash. The equipment has an estimated useful life of four years and no salvage value. Fitness Equipment Doctor uses double-declining balance depreciation for the equipment.

• On March 18, Fitness Equipment Doctor, Inc., purchased a $35,800 truck financed by a note payable bearing 8 percent annual interest. The truck has an estimated useful life of 300,000 miles and a residual value of $5,800. The truck was driven 56,000 miles in 2018 and is depreciated using the units of production method.

• On April 2, Fitness Equipment Doctor, Inc., paid $16,000 for land.

• On April 22, $2,100 of furniture was purchased on account. The furniture has a four-year life and a residual value of $300. Furniture is depreciated using straightline depreciation.

• On June 10, $1,600 of furniture was purchased. The furniture has a five-year life and a residual value of $100, and is depreciated using straight-line depreciation.

• On June 25, $3,660 of equipment was purchased. The equipment has a four-year life and a $300 residual value, and is depreciated using the straight-line method.

• On August 1, Fitness Equipment Doctor, Inc., purchased a building for $135,000 financed by a mortgage bearing 5 percent annual interest. The building has an estimated salvage value of $30,000 and is being depreciated over 25 years using the straight-line method.

Requirements

1. Calculate the depreciation expense as of December 31, 2018, for all assets purchased in 2018. Assume that no other depreciation has been recorded for the year. Round calculations to the nearest dollar.

2. Assuming these are Fitness Equipment Doctor’s only assets, how will fixed assets be reflected on the balance sheet at December 31, 2018?