Diversified Industries (DI) started as a house construction company. In recent years, it has expanded into heavy construction, ready-mix concrete, sand and gravel, construction supplies, and earth-moving services. The company completed the following transactions during 2022. Amounts have been simplified. January 1 January 3 July 10 December 31 The management decided to buy a 10-year-old building for $175,000 and the land on which it was situated for $130,000. DI paid $100,000 in cash and signed a note payable for the rest. DI paid $38,000 in cash for renovations to the building prior to its use. DI paid $1,200 cash for ordinary repairs on the building. DI considered the following information to determine year-end adjustments. a. The building will be depreciated on a straight-line basis over an estimated useful life of 30 years. The estimated residual value is $33,000. b. DI purchased another company two years ago at $100,000 more than the fair market values of the assets acquired. The goodwill has an unlimited life. c. At the beginning of the year, DI owned equipment with a cost of $650,000 and accumulated depreciation of $150,000. The equipment is being depreciated using the double-declining method, with a use life of 20 years and no residual value. d. At the year end, DI tested its long-lived assets for possible impairment of their value. Included in its equipment was a piece of old excavation equipment with a cost of $156,000 and the book value of $120,000 after making the adjustment for (c) above. Due to its smaller size and lack of safety features, the old equipment has limited use. The future cash flows and fair value are expected to be $35,000. Goodwill was found to be not impaired. The end of the annual accounting period is December 31, 2022. Required: 1. Indicate the accounts affected and the amount and direction (+ for increase and - for decrease) of the effect of each of the preceding events and required adjustments on the financial statement categories at the end of the year. Use the following headings: Date Asset Liabilities + Account Amount Account Amount Account Stockholders' Equity Amount 2. Prepare the journal entries to record each event that occurred during the year and the adjusting journal entries required at December 31st. 3. Which accounts would be reported on the income statement? Where? 4. Show how the December 31st balance sheet would report these long-lived tangible and intangible assets. 5. Assuming that the company had Net Revenue of $1,000,000 for the year and a book value of $500,000 for fixed assets at the beginning of the year, compute the fixed asset turnover ratio. Explain its meaning and evaluate it relative to the prior year's ratio of 1.5