Costs Subsequent to Acquisition As the first auditor of the Newberg Company you discover that the following entries have been made in the property, plant, and equipment account: 6,310 Property, Plant, and Equipment 2006 2006 Plant purchased 60,000 Depreciation Legal fees 700 Insurance 2,400 2007 2007 Repairs 2,000 Depreciation Addition to building 10,000 2008 2008 Repairs 3,000 Machine sold Insurance 2,800 Depreciation Machine purchased 7,000 6,879 500 7,421 You discover the following additional information: 1. The purchase of the plant included a building and machinery. When the plant was purchased, an appraisal showed that the building was valued at $39,000 and the machinery at $26,000. 2. Depreciation has been recorded each year at 10% of the balance in the account. The 10% was chosen because the property is being depreciated over 10 years for tax purposes. Subsequent investigation indicates that the expected lives at the time of acquisition were: building, 20 years; machinery, 8 years. 3. Each insurance payment was made on January 1 and was for a two-year policy. 4. The machine that was sold in 2008 had an original cost of $800. 5. All purchases and sales of property, plant, and equipment items occurred at the beginning of the year indicated. Required Prepare adjusting entries at December 31, 2008 to correct the books assuming they have not been closed for the year