6. Assume Madison Co. sold the equipment in #5 for $37,500 and had accumulated depreciation in the amount of $20,000. Record the sale.

7. Land was purchased costing $98,000; a building was removed at a cost of $5000, with proceeds of $800 from salvaged materials; broker fees were $3,800; attorneys fees were $1990; journalize the land purchase (assume 20% paid and remainder assigned to a note).

8. Machinery was purchased for $128,000 cash. It had a salvage value of $8,000 and an estimated useful life of 6 years. Journalize the purchase and the first two months depreciation.

9. The machinery in #8 was sold for $26,000 cash after year 5. Journalize the sale.

10. On January 1, 2010 Madison Co. purchased a vehicle for $55,000 cash. The useful life is expected to be 5 years with an estimated salvage value of $5000. At the end of year 3, Madison decided to increase the useful life to 7 years (in total) and reduce the salvage value to $3000.

Journalize the purchase

Journalize the first years depreciation

What is the annual depreciation beginning in year 4?