b. Prepare the December 31 journal entries to record depreciation expense for the year. Double-declining balance depreciation is used for the equipment, and straight- line depreciation is used for the building and parking lot. General Journal Debit Credit Description Date 19,750 Depreciation Expense Building Dec.31 Accumulated Depreciation - Building 19,750 To record depreciation on building Depreciation Expense - Land Improvements 810,000 Dec.31 60,000 Accumulated Depreciation-Land improvements 0 To record depreciation on parking lot. 2,600 Depreciation Expense - Store Equipment Dec.31 Accumulated Depreciation- Store Equipment + 18,462 Journal Entries for Plant Assets During the first few days of the year, Coast Company entered into the following transactions: Purchased a parcel of land with a building on it for $900,000 cash. The building, which will be used in operations, has an estimated useful life of 25 years and a salvage value of $60,000. The assessed valuations for property tax purposes show the land at $80,000 and the building at $720,000. 1 Paid $31,200 for the construction of an asphalt parking lot for customers. The parking lot is expected to last 12 years and has no salvage value. 2 3 Paid $25,000 for the construction of a new entrance to the building. 4 Purchased store equipment, paying the invoice price (including seven percent sales tax) of $78,760 in 5 Paid $240 freight on the new equipment cash. The estimated useful life of the equipment is eight years, and the salvage value is $6,000 Paid $1,650 to repair damages to floor caused when the store equipment was accidentally dropped as it was moved into place. Paid $55 for an umbrella holder to place inside front door (customers may place wet umbrellas in the holder). The holder is expected to last 20 years. 7