Question
Barga Company purchases $25,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth $3,000 at the end
Barga Company purchases $25,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth $3,000 at the end of that time. Welch Company purchases $10,500 of land on January 1, 2017. The land is expected to last indefinitely. Prepare the entries to record one years depreciation expense of $4,400 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31, 2017? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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