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Machinery that cost $18,000 on January 1, 2008 was sold for $16,000 on June 30, 2015. It was being depreciated over a 10-year life by

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Machinery that cost $18,000 on January 1, 2008 was sold for $16,000 on June 30, 2015. It was being depreciated over a 10-year life by the straight-line method, assuming its residual value would be $1,500. A warehouse that cost $190,000, residual value $10,000, was being depreciated over 30 years by the straight-line method. On January 1, 2015, when the structure was 25 years old, an additional wing was constructed at a cost of $70,000. The estimated life of the wing considered separately was 10 years, and its residual value was expected to be $5,000. The accounting period ends December 31, 2015. Please make sure your final answer(s) are accurate to 2 decimal places. (1) Give the following entries. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). a. Depreciation accumulated on machinery in 2015 to the date of sale. b. Sale of the machinery, c. The addition to the warehouse: cash was paid. d. Depreciation on the warehouse's addition after it has been in use for one year. e. Depreciation on the warehouse in 2015. General Joumal Account/Explanation Page G3 PR Debit Credit Date + - + - + = + = (2) Show how the building and attached wing would be reported on a balance sheet prepared immediately after the last entry in part (1) was recorded. Statement of Financial Position/Balance Sheet, 2015 Building Less: Accumulated depreciation, building Building, wing addition Less: Accumulated depreciation, wing Total

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