E4-5 Acadia Inc. Own the following long-lived assets:

Asset Date Purchased cost Estimated Useful life

Vehicles Jan. 1,2017 $33,000 3 years

Equipment July 1, 2018 15,000 5 years

Instructions:

(a) Prepare depreciation adjusting entries for each asset for the year ended December 31 , 2018, assuming the company uses straight line depreciation and adjusts its accounts annually.

(b) For each asset, calculate its accumulated depreciation and carrying amount at December 31, 2018.