11. Mike Inc. makes a lump sum purchase for land and building and pays $300,000. The land has been independently appraised at $105,000 and the building has been appraised at $245,000.

What is the journal entry to record the lump sum purchase?

DR: Land ["", "90,000", "300,000", "105,000"]

DR: Building ["210,000", "245,000", "90,000"]

CR: Cash ["350,000", "300,000"]

12.

On April 1, 2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000 salvage value and a useful life of 4 years or 130,000 units of production.

Elway sells the equipment for $8,000. At the time of sale, the equipment has a net book value of $10,000. Prepare the journal entry to record the sale of equipment.

["", "CR", "", "DR"] Cash ["2,000", "8,000", "45,000", "55,000"]

[dr] Accumulated Depreciation ["2,000", "55,000", "45,000", "8,000"]

[dr] ["Loss on Disposal of Assets", "Gain on Disposal of Assets"] ["45,000", "55,000", "8,000", "2,000"]

["CR", "DR"] Equipment ["45,000", "2,000", "8,000", "55,000"]