On April 1, 2020 Regional Company paid $925,000 for land, buildings, and equipment in a lump-sum purchase. An appraisal that cost Regional $10,000 revealed fair market values as follows: Land $125,000 Buildings $750,000 (25 year useful life, $100,000 salvage value) Equipment $125,000 (9 year useful life, $10,000 salvage value) Regional uses straight line depreciation for buildings and double declining balance depreciation for equipment and machinery. Depreciation is calculated to the nearest month. Required: Complete the following requirements in good form, showing as much work as you can and rounding all amounts to the nearest whole dollar. 1. Prepare the journal entry or entries to record the above transaction. 2. Prepare any required adjusting entries for Regional at the end of the year (December 31, 2020) 3. Answer the following in your own words: a. Explain the three characteristics of property, plant and equipment assets. b. Define 'depreciation: c. Explain the relationship between depreciation and the fair value of property, plant and equipment assets. LTRA FA