Assume

Inter-Provincial

Transport Ltd.'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:

LOADING...

(Click the icon to view the transactions.)

Requirements

1. Record the transactions in

Inter-Provincial

Transport Ltd.'s journal.

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

Requirement 1. Record the transactions in

Inter-Provincial

Transport Ltd.'s journal.January 2,

2020:

Sold motor-carrier equipment with accumulated depreciation of

$74,900

(cost of

$139,000)

for

$67,000

cash. Purchased similar new equipment with a cash price

$188,000.

Journalize the sale of the motor carrier equipment. (Record debits first, then credits. Explanations are not required.)