d. Vargo's property plant and equipment salvage value of $40,000 with a 15 vear life purchased on 6/1/13 and a pie o cost $88,000 and a salvage value of $4,000 with a 5 year life purchaseVaro spent $39,000 incurred delivery and installation charges of $8,000 on the equipment. painting the building during 2018. On consists of a building with a cost of $800,000 and a on 9/1/16. Var argo spent $39,000 go uilding. 1/1/18, Vargo revised the estimate on the life of the Vargo now estimates that the building will be in service until 1231750 8, Vargo exchanged the piece of equipment for a similar piece of equipment wi On 10/1/1 Eakin Company. The new equipment has salvage a salvage value of $5,000 and is expected taken out of service at the same time the old equipment would have been. The transaction commercial substance. The fair value of the equipment they gave up was $47,000. The fair of the equipment received from Eakin was $42.000. In addition to the equipment, they receive $5,000 in cash. Prepare the journal entry to record the transaction on Vargo's to be had no books. Vargo considers depreciation to be an administrative expense. Compute depreciation expense for the building and equipment for 2018. Vargo computes depreciation to the nearest month and uses the 150% declining balance method for both the building and equipment