chapter 9 question 8

At December 31,2025 . Novak Corporation reported the following plant assets. During 2026, the following selected cash transactions occurred. Apr: 1 Purchased land for $2,345,200. May 1 Sold equipment that cost $639,600 when purchased on January 1, 2019, The equipment was sold for $181,220. June 1 Sold land for $1,705,600. The land cost $1,066,000. During 2026, the following selected cash transactions occurred. Apr: 1 Purchased land for $2,345,200. May 1 Sold equipment that cost $639,600 when purchased on January 1, 2019. The equipment was sold for $181,220. June 1 Sold land for $1,705,600. The land cost $1,066,000. July 1 Purchased equipment for $1,172,600. Dec. 31 Retired equipment that cost $746,200 when purchased on December 31, 2016. No salvage value was received. (1o record sale of equipment) June 1% Cash 1705600 Gain on Disposal of Plant Assets Lind July 1 Equipenent Caki Dec. 31 Depreciation Expense Accumulated Depreciation- Equigrient (To record depreciation on equipment retired) Dec31 Depreciation Expense 4184050 Accumulated Depreciation-Equipment (To record disposal of equipment) At December 31,2025 . Novak Corporation reported the following plant assets. During 2026, the following selected cash transactions occurred. Apr: 1 Purchased land for $2,345,200. May 1 Sold equipment that cost $639,600 when purchased on January 1, 2019, The equipment was sold for $181,220. June 1 Sold land for $1,705,600. The land cost $1,066,000. During 2026, the following selected cash transactions occurred. Apr: 1 Purchased land for $2,345,200. May 1 Sold equipment that cost $639,600 when purchased on January 1, 2019. The equipment was sold for $181,220. June 1 Sold land for $1,705,600. The land cost $1,066,000. July 1 Purchased equipment for $1,172,600. Dec. 31 Retired equipment that cost $746,200 when purchased on December 31, 2016. No salvage value was received. (1o record sale of equipment) June 1% Cash 1705600 Gain on Disposal of Plant Assets Lind July 1 Equipenent Caki Dec. 31 Depreciation Expense Accumulated Depreciation- Equigrient (To record depreciation on equipment retired) Dec31 Depreciation Expense 4184050 Accumulated Depreciation-Equipment (To record disposal of equipment)