2. Roberts Company is making significant improvements to some of its assets, as follows.

1.	It is replacing the old furnace that cost $40,000 and has a $15,000 book value with a new furnace/air conditioner combination. Roberts spent $50,000 in cash and was given a $4,000 trade-in on the old furnace.
2.	The delivery van is being updated with a new $8,000 engine that will increase the useful life of the van by 2 years. The van originally cost $36,000 and has accumulated depreciation of $26,000.

Required:

a.	Record the appropriate journal entry for replacing the furnace.
b.	When recording the transaction associated with the van there is a choice between two methods. Provide the journal entries for each method.