Part 1. Five years ago, D.C. Corporation leased space in a building for a period of 20 years. The lease contract calls for \(\$ 81,000\) annual rental payments on each January 1 throughout the life of the lease and also provides that the lessee must pay for all additions and improvements to the leased property. Recent construction nearby has made the location more valuable; and on December 30, D.C. Corporation subleased the space to T.P., Inc., for the remaining 15 years of the lease, beginning the next January 1. T.P., Inc., paid \(\$ 360,000\) for the privilege of subleasing the property and in addition agreed to assume and pay the building owner the \(\$ 81,000\) annual rental charges. After taking possession of the leased space, T.P., Inc., paid for remodeling the office portion of the leased space at a cost of \(\$ 270,000\). The remodeled office portion is estimated to have a life equal to the remaining life of the building, 25 years, and was paid for on January 10.

\section*{Required}

Prepare entries for T.P., Inc., to record:

(a) T.P., Inc.'s payment to sublease the building space, \((b)\) its payment of the annual rental charge to the building owner, and

(c) payment for the new office portion. Also, prepare the adjusting entries required at the end of the first year of the sublease to amortize

(d) a proper share of the \(\$ 360,000\) cost of the sublease, and

(e) a proper share of the office remodeling cost.

Part 2. On May 8 of the current year, Huber Company paid \(\$ 1,080,000\) for mineral land estimated to contain 9 million tons of recoverable ore. It installed machinery costing \(\$ 187,500\), having an eight-year life and no salvage value, and capable of exhausting the mine in five years. The machinery was paid for on June 28 , four days before mining operations began. During the first six months' operations, the company mined 720,000 tons or ore.

\section*{Required}

Prepare entries to record

(a) the purchase of the mineral land, \((b)\) the installation of the machinery,

(c) the first six months' depletion under the assumption that the. land will be valueless after the ore is mined, and

(d) the first six months' depreciation on the machinery, which will be abandoned after the ore is fully mined.