During the first few days of the year, Inland Company entered into the following transactions:

1. Purchased a parcel of land with a building on it for $1,750,000 cash. The building, whihc will be used in operations, has an estimated useful life of 30 years and a salvage value of $100,000. The assessed valuations for the property tax purpose show the land at $140,000 and the building at $1,260,00.

2. Paid $90,00 for the construction of an asphalt parking lot for customers. The parking lot is expected to last 15 years and has no salvage value

3. Paid $250,00 for the construction of a new entrance to the building.

4. Purchased store equipment, paying the invoice price( including seven percent sales tax)of $89, 660 in cash. The estimated useful life of the equipment is five years, and the salvage value is $4,000.

5. Paid 640 freight on the new equipment.

6. Paid $1,200 to repair damages to the floor caused when the store equipment was accidentally dropped as it was moved into place.

7. Paid $25 for an umbrella holder to place inside front door (customers may place wet umbrellas in the holder). The holder is expected to last 30 years.

REQUIRED:

a. Prepare journal entries to record these transactions

b. Prepare the December 31 journal entries to record depreciation expenses for the year. Double declining balance depreciation is used for the equipment , and straight-line depreciation is used for the building and parking lot.