Fargo's property plant and equipment consist of a building with cost of $ 800,000 and a salvage value of $60,000 with a 10 year life purchased on 6/1/10 and equipment that cost $88,000 and salvage value of $4,000 with a 5 yr life purchased on 9/1/13. Fargo incurred delivery and installation charges of 8,000 on equipment. Fargo spent 39,000 renovating the building in 2016. 1/1/15 fargo revised estimate on life of building to be in service until 12/31/22

10/1/15 Fargo exchanged the equipment for a similar piece of equipment with Rock company. Transaction had no commercial substance. Fair value of equipment they gave up was 39,000 the fair value of the equipment received from Rock was 33,000 in addition to the equipment they received 6,000 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 2015. 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