FIXED ASSETS (20%) A. ACQUISITION COSTS Mr. Ardi acquired land at a cost of Rp4.200.000.000 on April 1, 2019. In addition to this cost, he had to pay the following expenses: a. Commission fee, 2% from the land price, Rp84,000,000 b. Land acquisition tax Rp12,000,000 c. Removal cost of old (unused) building Rp20.500.000. Mr. Ardi received Rp17.000.000 from the sales of salvage materials. d. Rp110.000.000 to build a fence e. Rp215.000.000 to build a parking lot Instructions: Prepare the journal entries for the above transaction! (4%) B. FIXED ASSETS DEPRECIATION Machinery is purchased on July 1, 2019 of the current fiscal year for $270,000. It is expected to have a useful life for 5 years and a residual value of $20.000. The company uses double-declining balance method. Instructions: Prepare the journal entries for: 1. Depreciation for the year of acquisition (Year-1) (2%) 2. Depreciation for 2020 (Year-2) (2%) C. NATURAL RESOURCES DEPLETION Sawo Jingga Coal Company invests Rp87.500.000 in a mine estimated to have 1 million tons of coal and salvage value Rp750.000. In the first year, Sawo Jingga extracts and sells 100.000 tons of coal Instructions: Journalize the depletion for Sawo Jingga for Year-1 (3%) D. AMORTIZATION OF INTANGIBLE ASSETS Harper Company, established in 2019, has the following transactions related to intangible assets. Date Transactions 1 Feb-19 Purchased patent (7-year useful life) S840,000 1 Apr-19 Goodwill purchased (indefinite useful life) $510,000 Instructions a. Prepare the necessary entries to record these intangibles. All costs incurred were for cash. (3%) b. Make the adjusting entries for any necessary amortization as of December 31, 2019. (3%) E. DISPOSAL OF FIXED ASSETS Percy Company owns equipment that cost $74,000 when purchased on January 1, 2014. It has been depreciated using the straight-line method based on an estimated salvage value of $4,000 and an estimated useful life of 5 years. Instructions: Prepare Perey Company's journal entries to record the sale of the equipment for $31,000 on May 1, 2017. (3%)