en close po u r dhe More Thaul COMM 3105 Intermediate Financial Accounting I Assignments Due Date: April 1, 2020 Please submit through Brightspace Question 1. PPE In 2010, Waxi Inc. purchased a property to open a new warehouse, and incurred the following costs: Purchase price of land with existing building Legal fees for closing Renovation costs for the building Opening ceremony for the warehouse Warehouse equipment costs Delivery of new warehouse equipment $ 237,000 3.000 49,000 1.000 50.000 5.000 Additional information: Waxi's fiscal year ends on December 31. Depreciation related to the new warehouse and its equipment started from January 1, 2011. The market value for the land and the building was $100,000 and $200,000, respectively. when purchased Required: 1. Decide the cost of the land as at December 31, 2010. 2. Estimate the depreciation expense for the building during 2011. The useful life of the building is 30 years, and the residual value is $50,000. Waxi uses the straight-line method for the building 3. Initially Waxi used a unit-of-production method to calculate the depreciation expense for the warehouse equipment; the equipment was expected to be able to handle 100,000 units over its lifetime and would have a residual value of $5,000. After handling 20,000 units in 2011, Waxi switched to a double-declining method for the equipment, starting from January 1, 2012, the equipment was expected to work for another 3 years and would have a residual value of $6,000. Calculate the depreciation expense for the equipment as at December 31, 2012. 4. This requirement follows requirement 3 above. Waxi sold the warehouse equipment on December 31, 2013, and received $10,000 cash. Prepare journal entries for this transaction