P$8-6($Algo$)$ Recording Journal Entries Related to Various Long$-$Lived Assets L$08-2,8-3,86$

$[$The following information applies to the questions displayed below.$]$

During the current year ending on December $31,$ BSP Company completed the following transactions:

a$.$ On January $1,$ purchased a patent for $$21,000$ cash $($estimated useful life, five years$).$

b$.$ On January $1,$ purchased another business for $$163,000$ cash, including $$6,000$ for goodwill. The assets included accounts receivable with a fair value of $$14,000$ and property and equipment with a fair value of $$143,000($with a residual value of $$15,015$ and estimated useful life of $10$ years$).$ The company assumed no liabilities. Goodwill has an indefinite life.

c$.$ On December $31,$ constructed a storage shed on land leased from D$.$ Heald. The cost of the shed was $$16,600.$ The company uses straight$-$line depreciation. The lease will expire in five years. $($Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.$)$

d$.$ Total expenditures for ordinary repairs were $$4,800$ during the current year.

e$.$ On December $31$ of the current year, sold Machine A for $$7,200$ cash. Original cost was $$24,000$; accumulated depreciation to December $31$ of the prior year was $$16,400($on a straight$-$line basis with a $$3,500$ residual value and five$-$year useful life$).$ Record the depreciation expense in transaction e$(1)$ and the sale in transaction $e(2).$

f$.$ On December $31$ of the current year, paid $$6,200$ for a complete reconditioning of Machine $B$ acquired on January $1$ of the prior year. Original cost, $$61,100$; accumulated depreciation to December $31$ of the prior year was $$2,800($on a straight$-$line basis with a $$7,900$ residual value and $19-$year useful life$).$

P$8-6$ Part $2$

$2.$ For each of these the assets involved in transactions $($a$)$ through $($f$),$ record the adjusting entry for depreciation amortization expense at the end of the current year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account fielc

Answer is not complete.

$\backslash$table$[[$No$,$Transaction,General Journal,Debit,Credit$],[1,$a$,$Amortization expense,$\frac{O}{?},4,200,],[,$Patent,$\frac{O}{?},,4,200$