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(Learning Objectives 1, 3, 4: Measure and account for the cost of plant assets and depreciation; analyze and record a plant asset disposal) Tucker. Inc.,

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(Learning Objectives 1, 3, 4: Measure and account for the cost of plant assets and depreciation; analyze and record a plant asset disposal) Tucker. Inc., has the following plant asset account: Land Buildings, and Equipment, with a separate accumulate depreciation account for each of these except Land. Tucker completed the following transactions: Traded in equipment with accumulated depreciation of $61,000 (cost of $131,000) for similar new equipment with a cash cost of $177,000. Received a trade-in allowance of $76,000 on the old equipment and paid $ 101,000 in cash. Sold a building that had a cost of $640,000 and had accumulated depreciation of $150,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $240,000. Tucker received $125,000 cash and a $360,000 note receivable. Purchased land and a building for a single price of $350,000 cash. An independent appraisal valued the Lind at $127, 400 and the building at $236, 600. Recorded depreciation as follows: Equipment has an expected useful life of eight years and an estimated residual value 12% of cost. Depreciation is computed on the double-declining-balance method Depreciation on building is computed by the straight-line method. The new building carries a 40-year useful life and a residual value equal to 20% of its cost. Record the transactions in Tucker, Inc.'s, journal

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