# 2 May I get some help

Recording Acquisition of Equipment through Donation

A shareholder donated a building and the land on which it is located to Clemson Inc. The property was reliably appraised at a value of $288,000 (25% related to the land). Clemson Inc. paid transfer costs of $7,200 cash. The building has an estimated remaining life of 25 years (no residual value).

Prepare Clemsons entries to record the (a) transfer of the building and land, and (b) depreciation expense at the end of the first year. Assume a full year of depreciation and use of the straight-line method

Note: Record debit and credit accounts in alphabetical order using the first letter of the account name.

a. transfer of the building and land

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