Webb Industries reported the following information concerning the company€™s property, plant, and equipment in its 2018 financial report:Listed here are four independent cases involving buildings, equipment, and land during 2018.
1. The company purchased a building for $60,000.
2. The company sold equipment in December 2018 that was purchased for $50,000. It recorded a gain of $5,000 on the sale.
3. The company sold a piece of land for $300,000 at a gain of $75,000.
4. The company acquired a building in exchange for land. The land had a book value of $150,000 and a market value of $600,000.

REQUIRED:
a. For each case, explain the change from 2017 to 2018 in the affected buildings, equipment, and land accounts. (For example, in case [1] explain the change in the building account, the related accumulated depreciation account, and the balance in the related depreciation expense account.)
b. For each case, compute the effect on the cash balance, and indicate the appropriate disclosure on the statement of cash flows.

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2018 2017 $ 750,000 $820,000 Buildings Accumulated depreciation (100,000) (80,000) Equipment 500,000 380,000 Accumulated depreciation (85,000) (75,000) Land 250,000 250,000 Depreciation expense (buildings) 40,000 25,000 Depreciation expense (equipment) 15,000 12,000