=+EX 10-16 Capital expenditure and depreciation objs. 1, 2

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b. Depreciation Expense, $600 Crane Company purchased and installed carpet in its new general offices on March 30 for a total cost of $12,000. The carpet is estimated to have a 15-year useful life and no residual value.

a. Prepare the journal entries necessary for recording the purchase of the new carpet.