7-71

1. Wendt Corporation acquired a new depreciable asset for $94,000. The asset has a 4-year expected life and a residual value of zero.

2. Required:

   1. Prepare a depreciation schedule for all 4 years of the asset's expected life using the straight-line depreciation method. If an amount is zero, enter "0".

   Wendt Corporation
   Straight-Line Depreciation Method
   Four Years
   End of Year	Depreciation Expense	Accumulated Depreciation	Book Value
   			$
   Year 1	$	$
   Year 2
   Year 3
   Year 4

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   2. Prepare a depreciation schedule for all 4 years of the asset's expected life using the double-declining-balance depreciation method. If an amount is zero, enter "0".

   Wendt Corporation
   Double-Declining-Balance Depreciation Method
   Four Years
   End of Year	Depreciation Expense	Accumulated Depreciation	Book Value
   			$
   Year 1	$	$
   Year 2
   Year 3
   Year 4

   2)In order to provide capital for new hotel construction in other locations, Wilton Hotel Corporation has decided to sell its hotel in Pierre, South Dakota. Wilton auctions the hotel and its contents on October 1, 2019, with the following results:

3. Land	$599,600
   Building	300,000
   Furniture	120,000

   Wilton's accounting records reveal the following information about the assets sold:

   Asset	Acquisition Cost		Accumulated Depreciation
   Land	$14,600
   Building	350,000		$295,000
   Furniture	298,000		133,000

   Required:

   Prepare a separate journal entry to record the disposition of each of these assets. Make the journal entries for the disposition of the assets in the order that they appear in the table above. If an amount box does not require an entry, leave it blank.

   2019 Oct. 1	Building Cash Furniture Gain on Disposal of Property, Plant, and Equipment Land
   	Accounts Receivable Accumulated Depreciation Cash Land Loss on Disposal of Property, Plant, and Equipment
   	Accumulated Depreciation Cash Gain on Disposal of Property, Plant, and Equipment Land Loss on Disposal of Property, Plant, and Equipment
   	(Record disposal of land)
   2019 Oct. 1	Building Cash Furniture Gain on Disposal of Property, Plant, and Equipment Land
   	Accumulated Depreciation Building Gain on Disposal of Property, Plant, and Equipment Land Loss on Disposal of Property, Plant, and Equipment
   	Accounts Receivable Accumulated Depreciation Cash Gain on Disposal of Property, Plant, and Equipment Loss on Disposal of Property, Plant, and Equipment
   	Accumulated Depreciation Building Cash Furniture Loss on Disposal of Property, Plant, and Equipment
   	(Record disposal of building)
   2019 Oct. 1	Building Cash Furniture Gain on Disposal of Property, Plant, and Equipment Land
   	Accumulated Depreciation Building Furniture and Fixtures Gain on Disposal of Property, Plant, and Equipment Land
   	Building Furniture Gain on Disposal of Property, Plant, and Equipment Land Loss on Disposal of Property, Plant, and Equipment
   	Accumulated Depreciation Cash Furniture Gain on Disposal of Property, Plant, and Equipment Loss on Disposal of Property, Plant, and Equipment
   	(Record disposal of furniture and fixtures)