Information for Blake Corporation's property, plant, and equipment for Year $6$ is:

Account Balances at January $1,$ Year $6$

Debit Credit

Land $$150,000$

Building $1,200,000$

Accumulated Depreciation $$263,100$

Machinery and Equipment $900,000$

Accumulated Depreciation $250,000$

Automotive Equipment $115,000$

Accumulated Depreciation $84,600$

Depreciation Method and Useful Life

Building: $150\%-$declining$-$balance; $25$ years.

Machinery and equipment: Straight$-$line; $10$ years.

Automotive equipment: Sum$-$of$-$the$-$years'$-$digits; $4$ years.

Leasehold improvements: Straight$-$line.

The residual value of the depreciable assets is immaterial.

Depreciation is computed to the nearest month.

Transactions during Year $6$ and other information were as follows:

On January $2,$ Year $6,$ Blake purchased a new car for $$10,000$ cash and a trade$-$in of a $2-$year$-$old car with a cost of $$9,000$ and a book value of $$2,700.$ The new car has a cash price of $$12,000$; the market value of the trade$-$in is not known.

On April $1,$ Year $6,$ a machine purchased for $$23,000$ on April $1,$ Year $1,$ was destroyed by fire. Blake recovered $$15,500$ from its insurance company.

On May $1,$ Year $6,$ costs of $$168,000$ were incurred to improve leased office premises. The leasehold improvements have a useful life of $8$ years. The related lease, which terminates on December $31,$ Year $12,$ is renewable for an additional $6-$year term. The decision to renew will be made in Year $12$ based on office space needs at that time.

On July $1,$ Year $6,$ machinery and equipment were purchased at a total invoice cost of $$280,000$; additional costs of $$5,000$ for freight and $$25,000$ for installation were incurred.

Blake determined that the automotive equipment comprising the $$115,000$ balance at January $1,$ Year $6,$ would have been depreciated at a total amount of $$18,000$ for the year ended December $31,$ Year $6.$

Required:

Question Content Area

$1.$ For each asset classification, prepare schedules showing depreciation and amortization expense, and accumulated depreciation and amortization that would appear on Blake's income statement for the year ended December $31,$ Year $6.$

BLAKE CORPORATION

Depreciation and Amortization Expense

For the Year Ended December $31,$ Year $6$

Building:

Depreciation expense for Year $6$ $fill in the blank aa$203$a$010009045\_1$

Machinery and equipment:

Cost of Machinery and equipment, Balance, $1/1/$Y$6$ $fill in the blank aa$203$a$010009045\_2$

Deduct: Machine destroyed by fire fill in the blank aa$203$a$010009045\_3$

$fill in the blank aa$203$a$010009045\_4$

Depreciation expense for Year $6$ $fill in the blank aa$203$a$010009045\_5$

Machine destroyed by fire, $4/1/$Y$6$ $fill in the blank aa$203$a$010009045\_6$

Depreciation from $1/1$ to $4/1/$Y$6$ fill in the blank aa$203$a$010009045\_7$

Purchased machinery and equipment, $7/1/$Y$6$ $fill in the blank aa$203$a$010009045\_8$

Depreciation from $7/1$ to $12/31/$Y$6$ fill in the blank aa$203$a$010009045\_9$

Total depreciation on machinery and equipment fill in the blank aa$203$a$010009045\_10$

Automotive equipment:

Depreciation expense for Year $6$ on $$115,000$ balance, $1/1/$Y$6$ $fill in the blank aa$203$a$010009045\_11$

Deduct: Depreciation on car traded in $1/2/$Y$6$ fill in the blank aa$203$a$010009045\_12$

$fill in the blank aa$203$a$010009045\_13$

Depreciation on car purchased, $1/2/$Y$6$ fill in the blank aa$203$a$010009045\_14$

Total depreciation on automotive equipment fill in the blank aa$203$a$010009045\_15$

Leasehold improvements:

Amortization for Year $6$ fill in the blank aa$203$a$010009045\_16$

Total depreciation and amortization expense for Year $6$ $fill in the blank aa$203$a$010009045\_17$

Question Content Area

For each asset classification, prepare schedules showing depreciation and amortization expense, and accumulated depreciation and amortization that would appear on the balance sheet at December $31,$ Year $6.$

BLAKE CORPORATION

Accumulated Depreciation and Amortization

December $31,$ Year $6$

Accumulated depreciation: Building at $12/31/$Y$6$

Balance, $1/1/$Y$6$ $fill in the blank

Depreciation for Year $6$ fill in the blank

Balance, $12/31/$Y$6$ $fill in the blank

Accumulated depreciation: Machinery and equipment at $12/31/$Y$6$

Balance, $1/1/$Y$6$ $fill in the blank

Depreciation for Year $6$ fill in the blank

$fill in the blank

Deduct: Machine destroyed by fire fill in the blank

Balance, $12/31/$Y$6$ fill in the blank

Accumulated depreciation: Automotive equipment at $12/31/$Y$6$

Balance, $1/1/$Y$6$ $fill in the blank

Depreciation for Year $6$ fill in the blank

$fill in the blank

Deduct: Car traded in fill in the blank

Balance, $12/31/$Y$6$ fill in the blank

Accumulated amortization: Leasehold improvements at $12/31/$Y$6$

Amortization for Year $6$ $fill in the blank

Balance, $12/31/$Y$6$ fill in the blank

Total a