At beginning of 2020, Moon Co. started its business to make and sell food blenders. On March 1, Moon paid cash of $500,000 to acquire a factory building with several pieces of equipment left inside. According to the appraisals, the building had a fair market value of $420,000 and the equipment had a fair market value of $105,000. The building was estimated to have a useful life of 15 years with salvage value of $80,000, and equipment was estimated to have useful lives of 10 years with no salvage value. Moon decided to adopt the double-declining balance method to record depreciation on the building and straight-line method to record depreciation for equipment.

On July 2, Moon spent $42,000 cash to purchase a brand name for the food benders which a trademark protection was granted for. Legal fees and other costs associated with registration of the trademark totaled $7,000. The useful life of the trademark was determined to be 8 years with salvage value of $5,000. Moon chose the straight-line method to record amortization on its intangible assets.

On October 30, Moon sold out one piece of equipment for $18,700. The equipment was purchased on March 1 with the allocated cost of $26,000. No other equipment was sold during this year.

1.)

Show the effects of all the above transactions on Moons Balance Sheet as of 12/31/2020 and Income Statement of 2020 (Note: the key is to show which financial statements the accounts used in the above requirements 1 and 2 will be reported. Thus, there is no need to prepare the complete financial statements.)