Journal Entries Plant Assets

You must show your work in order to receive credit for this assignment. Problem 1 - Depreciation: A company purchased a machine on January 1 of the current year for $750,000 The company estimated a live of 5 years or 20.000 hours, with a salvage value of $75,000. During the machine's 5- year life its hourly usage was: 3.000 4,000;5,000, 5,000, and 3,000 hours. Required: Compute depreciation for each year and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Problem 2 - Plant Asset Journal Entries - Prepare the journal entries required by the following transactions that occurred for Rolly Polly Corporation in 2022 1/1 Paid $68.000 cash to replace a motor on equipment that extends its useful life by four years. 125 Paid $272 for the monthly cost of replacement filters on an air-conditioning system. 2015 Completed an addition to a building for $382,500 cash. 41 Paid $140,000 for 3 racing horses (each horse has its own asset account). Horse #1 - Speed Socks was appraised for $70,000. Horse #2 - Greased Lightening appraised for $60,000. Horse #3 - Half Speed appraised for $30,000 6/30 Sold a machine for $500,000 that was originally purchased on 1/1/20 for $1,200,000. At the time of purchase the machine was estimated to have a four-year life and a $50,000 salvage value. 8/31 A construction project was finished that included the following costs: $400,000 for the land, $50,000 to tear down an old building on the land so we could get ready to build a new building. $35.000 to fill and level the lot. It paid $2,000,000 for construction of a new building, 550,000 for fencing, and $150,000 for the construction of a new parking lot. Record a single entry for all of these expenditures, everything was paid in cash, 12/31 Record depreciation on buildings of $250.000 12/31 Record depreciation on land improvements of $25.000 12/31 Record depreciation on equipment of $35,000 Short Answer Question # 1 - In your own words explain how plant assets are different than other assets Short Answer Question # 2 - What is depreciation? Why do we calculate and record depreciation for plant assets every year