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Exercise 10-22 The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on

Exercise 10-22

The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year.
Jan. 30 A building that cost $190,080 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,344 and was permitted to keep all materials salvaged.
Mar. 10 Machinery that was purchased in 2013 for $23,040 is sold for $4,176 cash, f.o.b. purchasers plant. Freight of $432 is paid on the sale of this machinery.
Mar. 20 A gear breaks on a machine that cost $12,960 in 2012. The gear is replaced at a cost of $2,880. The replacement does not extend the useful life of the machine but does make the machine more efficient.
May 18 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,920 because of defective workmanship on the original base. The cost of the machinery was $20,448 in 2014. The cost of the base was $5,040, and this amount was charged to the Machinery account in 2014.
June 23 One of the buildings is repainted at a cost of $9,936. It had not been painted since it was constructed in 2016.

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