for a) I dont understand how we get the values in yellow for depreciation, how do we calculate?

Question 3 Agora Manufacturing Incorporated (AMI) is a manufacturer of custom cabinets and enclosures such as switchboards, projection room equipment, and control cabinets. The company has a December 31 year end and uses private entity GAAP. As at December 31, 2011, the company had the following balances in its capital asset accounts: Account Title Description Cost at Accumulated Depreciation/ December Depreciation/ Amortization method and 31, 2011 Amortization rate Dec. 31, 2011 Land Land for Mississauga $1,500,000 manufacturing facility Factory Manufacturing facility $10,875,000 $1,057,500 Residual value $5,000,000 Building in Mississauga straight-line over 25 years Equipment Used in manufacturing $23,756,000 $17,179,022 Declining balance 25% Vehicles Delivery trucks $500,000 $315,680 Declining balance 20% Goodwill Purchased in 2007 $500,000 Customer list Purchased in 2005 $250,000 $162,500 Straight-line over 10 years Note: The company calculates partial year depreciation as 50% of the normal rate in the year of addition/acquisition and no depreciation in the year of disposal/sale. The accountant in charge of the capital asset accounts is out on sick leave and the 2012 transactions for capital assets have therefore not been recorded. AMI does not currently capitalize interest costs. 1. The company competed construction of a new plant in Saskatoon on December 15, 2012 to help it better meet the needs of its customers west of Mississauga. The costs associated with this construction project were as follows: $500,000 of land, constructed building $1,500,000 with useful life 20 years and residual value $50,000, $75,000 of avoidable interest on construction of building, and $4,212,360 of manufacturing equipment. 2. In June 2012, AMI sold a delivery truck for $10,000. The truck originally cost $25,000 and accumulated depreciation on the truck to December 31, 2011 was $10,000. 3. AMI traded some old equipment at the Mississauga factory for different equipment with a similar life and value in use. The fair value of the equipment disposed of was $5,000. The cost of this equipment was $7,000 and the accumulated depreciation on the equipment at December 31, 2011 was $3,000. This transaction was not recorded in the books of account. No entry was made to record the exchange. 4. Shortly after the new factory was complete, vandals attacked the building and significant damage was done. The costs to correct the damage, which were not covered by insurance, included: new paint to cover graffiti $4,000, glass for broken windows $10,000, and improved security system $25,000 5. During the year, the company developed a new piece of equipment that had a built-in security camera. It was the policy to amortize development costs on a straight line basis over three years, with 50% in the year of development. The costs associated with product development included: $50,000 to determine how a security camera would work with the equipment, $350,000 design testing and construction of prototype equipment, $40,000 determining the best production process for the new equipment, and $47,000 advertising costs to alert customers about the new product. 6. The customer list lost value and will not provide benefits through to 2015, as originally predicted. At the end of the year it was determined to provide undiscounted future cash flows of $50,000 in total over the next two years. There are no estimated costs to sell the list as it will not be sold and the fair value is $46,000. Goodwill has a recoverable value of $700,000 as at December 31, 2012. Required It is year end, and you have been asked to assist the company in preparing the financial statements. a) Create all necessary journal entries for 2012. Show computations for depreciation. b) Prepare the assets section of the balance sheet at December 31, 2012 based on the information above. 235,000 Depreciation and amortization adjusting entries Depreciation Expense-Building.... Accumulated Depreciation - BuildingMississauga. ($10,875,000 - $5,000,000 - 25) 235,000 Depreciation Expense Building. 36,250 or 36,750 Accumulated Depreciation - BuildingSaskatoon ... 36,250 or 36,750 ($1,500,000 - $50,000 = 20 years X 50%)=36,250 if security system included 36,750 1,644,245 Depreciation Expense -Equipment. Accumulated Depreciation Equipment-Mississauga..... 1,644,245 d Depreciation Expense -Equipment. 526,545 or 529,670 Accumulated Depreciation - Equipment- Saskatoon....... 526,545 or 529,670d 33,864 Depreciation Expense Vehicles Accumulated Depreciation VehiclesMississauga 33,864 65,000 Amortization Expense-Development Costs Accumulated Amortization, Development Costs. (Item 5: $390,000 - 3 X 50%) 65,000