Assume Trusty Transport Lid.'s balance sheet includes the following assets under Property, Plant, and Equipment: Land, Buildings, and Motor-Carrier Equipment. Trusty has a separate accumulated depreciation account for each of the except land. Further, assume that Trusty completed the following transactions: i (Click the icon to view the transactions.) X Transactions Requirements 1. Record the transactions in Trusty Transport Lid.'s journal. 2. How does management choose which depreciation method to use? 2020 Requirement 1. Record the transactions in Trusty Transport Lid.'s journal. Jan. 2 Sold motor-carrier equipment with accumulated depreciation of $64,800 (cost of $129,000) for $72,000 cash. Purchased similar new equipment with a cash price January 2, 2020: Sold motor-carrier equipment with accumulated depreciation of $186,000. July 3 Sold a building that had cost $690,000 and had accumulated depreciation of Journalize the sale of the motor carrier equipment. (Record debits first, then cre $135,000 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 Journal Entry $250,000. Trusty received $106,000 cash and a $443,500 note receivable. Date Accounts De Oct. 29 Purchased land and a building for a single price of $424,000. An independent appraisal valued the land at $158,000 and the building at $309,000. Jan. 2 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. Record the purchase of the new motor carrier equipment. Journal Entry Print Done Date Accounts Jan 2