Gauge Construction Company is making adjusting entries for the year ended March $31$ of the current year. In developing information for the adjusting entries, the accountant learned the following:

a$.$ The company paid $$3,700$ on January $1$ of the current year to have advertisements placed in the local monthly neighborhood paper. The ads were to be run from January through June. The bookkeeper debited the full amount to Prepaid Advertising on January $1.$

b$.$ At March $31$ of the current year, the following data relating to Construction Equipment were obtained from the records and supporting documents.

$\backslash$table$[[$Construction equipment $($at cost$),$$$530,000$