Louisville Farms, is a breeder of racehorses. The CEO John Carter needs assistance and advice with his financials to allow him to concentrate on the horse breeding rather than trying to figure out the best accounting approaches. You have been recruited as a consultant by the CEO

QUESTION 1: (Points 35) Louisville Farms, a breeder of racehorses, paid $432,000 cash for a prize-winning stallion on January 1, 2013. The stallion is depreciated on a straight-line basis, with depreciation for partial years rounded to the nearest month. Estimated useful life was nine years, with no residual value. After owning the animal for six years and five months, Louisville Farms sold the stallion on May 31, 2019, for cash of $85,000. Depreciation had last been recorded on December 31, 2018. 1.1. Compute to the nearest full month depreciation for the fractional period from January 1, 2019 to May 31 of 2019. $ (Show your calculations). 1.2. Compute the book value of the stallion at May 31, 2019, the date of sale. $ (Show your calculations). 1.3. Compute the gain or loss on the sale of the stallion. $_ [gain/loss) (Show your calculations). 1.4. In the space provided below, prepare the journal entry to record the sale of the stallion on May 31, 2019. (Use Breeding Stock as the title of the asset account. Assume that depreciation to date of sale already has been recorded.] (Show your calculations). General Journal 2009 May 31