On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $940,000 to the various types of assets along with estimated useful lives and residual values are as follows:

Asset	Cost				Estimated Residual Value				Estimated Useful Life (in years)
Land	$	130,000				N/A			N/A
Building		440,000				none			25
Equipment		240,000				12% of cost			8
Vehicles		130,000			$	13,000			10
Total	$	940,000
On June 29, 2022, equipment included in the March 31, 2021, purchase that cost $94,000 was sold for $74,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2021. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022, and the sale of equipment. 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2022.

Required 1 Required 2 Required 3 Compute depreciation expense on the buildir Building Equipment Depreciation Expense $ 13,200 $ 19,800 $ 15,955 X Vehicles No Date General Journal Debit Credit 1 June 29, 2022 4,136 X Depreciation expense Accumulated depreciation equipment 4,136 X 2 June 29, 2022 Cash 74,000 12,408 Accumulated depreciation equipment Equipment Loss on sale of equipment 94,000 7,592 X Required 1 Required 2 Required 3 Compute depreciation expense on the building calculations.) $ Building Equipment Vehicles Depreciation Expense 17,600 $ 16,984 X $ 19,677 X R