as gesche Besc-ony - More ferences Mailings Roview View Help ABCD ofbeend AaBb Bbcc AaB Aabcd Al 1 Normal 1 No Spac Heading 1 Heading 2 Title Subtitle Sut A A A A AOA150- Patah COM204 C 2020 Foll As s CPIYM Y W (66) Due on November 02. Assume that inter Provincial Transport Id's balance sheet includes the following assets under Property. Plant, and Equipment: Land, Buildings, and Motor Carrier Equipment Inter Provincial has a separate accumulated depreciation account for each of these assets except Land. Further, assume that inter Provincial completed the following transactions in 2019: Jan 3 Sold motor carrier equipment with accumulated depreciation of $67,000 (cost of $130,000) for $71,000 cash. Purchased similar new equipment with a cash price of $176,000 July 2 Sold a building that had cost $650,000 and had accumulated depreciation of $145,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building had a 40 year useful life and a residual value of $250,000. Inter-Provincial received $100,000 cash and a $400,000 note receivable, Oct. 29 Purchased land and a building for a single price of $420,000. An independent appraisal valued the land at $150,000 and the building at $300,000 Dec. 31 Recorded depreciation as follows: New motor-carrier equipment has an expected useful life of six years and an estimated residual value of 5% of cost. Depreciation is computed on the double-diminishing. balance method. Depreciation on buildings is computed by the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost. Requirements: Record the transactions in Inter-Provincial Transport Ltdi's journal. How does management choose which depreciation method to use? er