At the beginning of 201 7. Hana Company purchased a group of assets as a bulk purchase at an auction sale Hana paid $120,000 as is for two E-Desks. computer set.

a chair and an aircon. The items were valued by a professional appraiser as follows.

Item	Estimated Value	%	Estimated Remaining Life in years
E-Desk 1	$4,800	5%	2
E-Desk 2	$7,680	8%	4
Computer Set	$52,800	55%	8
Chair	$11,520	12%	4
Aircon	$19,200	20%	6
Total	$96,000	100%

After the auction, Hana had the office furnitures moved to the office. Handling of computer cost $3,000. After the computer was placed in the office, the supplier was

contracted to install additional power lines and hook up the computer at a cost of $1,000. An electrician was also needed to connect the wires. This cost $400.

Before placing E-Desk l and 2 into use, Hana took both E-Desks to the local repair shop. The carpenter said that E-Desk 1 needed a new stand that would cost $2,000 and

E-Desk 2 needed a major repair at a cost of $3,000 (the repair is required to get the E-Desk standing). Hana paid cash for the repairs. Early in 2018, Hana advertised

and sold E-Desk 1 for $10,000 and repainted E-Desk 2 for $2,000.

WYC's company uses a half-year method for depreciation (i.e. 1/2 years

depreciation in the year of purchase, and 1/2 years depreciation in the year of sale). The company uses straight-line depreciation, with an estimated residual value of 8% of cost for all assets.

Required:

Write the journal entries to record the following.

1. Using a straight-line depreciation method, record all journal entries related to the above transactions. When allocating a bulk purchase, round up to the nearest dollar. If necessary, adjust the largest number up or down to avoid journal entry imbalance due to rounding. Note: The exact journal entry dates can be omitted for the purpose of this exercise. Simply indicate if each transaction belongs to 2017 or 2018. Show your calculations in the space provided on the following page.

2. Using the double-declining-balance depreciation method, redo the journal entries for the depreciation of the Chair for 2017 and 2018. Note: the exact journal entry dales can be omitted for the purpose of this exercise. Simply indicate if each transaction belongs to 2017 or 2018. Show your calculations in the space provided on the following page.