Fargo's property plant and equipment consist of a building with cost of $ 840,000 and a salvage value of $40,000 with a 15 year life purchased on 6/1/14 and equipment that cost $88,000 and salvage value of $4,000 with a 5 yr life purchased on 9/1/17. Fargo incurred delivery and installation charges of 8,000 on equipment. Fargo spent 39,000 painting the building during 2019. On 1/1/19 fargo revised estimate on life of building. fargo now estimates that the building will be in service until 12/31/31.

On 10/1/16 Fargo exchanged the piece of equipment for a similar piece of equipment with Rock company. The new equipment has salvage a salvage value of $5000 and is expected to be taken out of service at the same time the old equipment would have been. Transaction had no commercial substance. Fair value of equipment they gave up was 47,000 the fair value of the equipment received from Rock was 40,000 in addition to the equipment they received 7,000 cash

1. Prepare journal entry to record the transaction on Fargos books

2. Fargo considers depreciation to be admin expense. compute depreciation for building and equipment 2019. fargo computes depreciation to nearest month and uses 200% declining balance method for both Can someone show me how to do this step by step