i dont know how to solve for the answer of problem #4. the answer is 94,737.

ho 21. (20 points) Your solution should be in good form with amounts clearly labeled and should use appropriate account titles. Please keep your handwriting legible, otherwise you will lose up to FIVE points. Simpson and Homer Corporation began operations on January 1, 2006. On January 1, 2006, Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $2,400,000. The building was completely furnished. According to independent appraisals, the fair values were $1,300,000, S780.000, and $520,000 for the building, land, and furniture and fixtures, respectively. (1) (2) Simpson and Homer Corporation paid $2,000,000 cash and signed a $400,000, 10%, 6-month note for the remaining balance. 10% interest rate is appropriate in this situation. The interest on the note will be paid on the maturity date. / 4) residual value The estimated useful life of the office building is 20 years and the salvage value is $200,000 The company uses the straight-line method to depreciate the building. The estimated service life of the furniture and fixtures are 10 years without residual value. The company uses the straight-line method to recognize the depreciation. Required: 1. Prepare an appropriate journal entry to record the acquisition of building, land and furniture and fixtures on January 1, 2006. 2. Prepare a journal entry to record the repayment of the note used for the acquisition of land and building on June 30, 2006. Jan ! - June 30 => 6 months 3. Prepare an appropriate adjusting entry to record the depreciation expense of building and furniture and fixtures for 2006 on December 31, 2006. find COSE, notiv. 4. On January 1, 2008, the company changed the depreciation method for the building from straight-line method to sum-of-years-digit method. Prepare the journal entry to record the depreciation expense of building for 2008, assuming there is no change in useful life and residual value. 5. On July 1, 2010, the company sells part of its furniture and fixtures with the original cost of $200,000 for SI 50,000. Prepare a journal entry to record the transaction Building 1,300,000 Land Furniture and Fixtures - 780, ouo mung 520,000 Cash 2,000,000 Nole payable 400,000 Nute payable 400,000 interest Exp=4L Interest Expense 20,000 cash 420,000 4. To record the depreciation expense for 2008 Depreciation expense-building Accumulated depreciation-building 24,737 94,737 24 94.737