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4) Tucker, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land.
4) Tucker, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Tucker completed the following transactions: Jan 3 Traded in equipment with accumulated depreciation of $61,000 (cost of $131,000) for similar new equipment with a cash cost of $177,000. Received a trade-in allowance of $76,000 on the old equipment and paid $101,000 in cash, Jun 30 Sold a building that had a cost of $640,000 and had accumulated deprecia- tion of $150,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $240,000. Tucker received $125,000 cash and a $360,000 note receivable. Purchased land and a building for a single price of $350,000 cash. An indepen- dent appraisal valued the land at $127,400 and the building at $236,600. Recorded depreciation as follows: Equipment has an expected useful life of eight years and an estimated residual value of 12% of cost. Depreciation is computed on the double-declining-balance method. Depreciation on buildings is computed by the straight-line method. The new building carries a 40 year usefu! life and a residual value equal to 20% Oct 31 Dec 31 & years 121. of 6t0o00 AF Va of its cost. Land Value Required 236 36h Record the transactions in Tucker, Inc.'s journal. I. Total 640,000 61,c00 A Camlated 10,000 (we-) 134,0 deevacation L01 a h L01, (240,000)-50. Rirdul Value 4.G 17
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