assume inter-continental transport ltd.s' balance sheet includes the follwing assets under property , plant and equipment: land, buildings, and motor carrier equipment. inter-continental has a seprate depreciation account for each of these assets except land. Further. assume that inter-continental completed the following trasactions:

2020

jan 2. sold motor carrier equipment with accumulated depreciation of 75,000 (cost od $139000) for $73000 cash. purchased similar new equipment with a cash price of $183000.

july 3. sold a building that had cost $680,000 and had accumulated depreciation id $135000 through decemeber 32 of the perceding year. depreciation is computed on a straight line basis. the building had a 40 years useful life and a residual value of $270000. intercontinental received a $101,000 cash and $438875 note receivable.

oct 29. purchasdd land and a building for a single price of $423000. an independant appraisel value the land at $157000 and the building at $304000.

dec 31. recorded depreciation as follows;

new motor carrier equipment has an expected useful life of 6 years and an estimated resudual value of 5% of cost. depreciation is computed on double diminishing method.

depreciation on buildings is computed by the staright line method. the new building carries a 40 year useful life and a residual value equal to 10% of its cost.

requirements:

1 record the trasactions in intercontinental trandport ltd's journal.

2. how does management choose which depreciation method to use?