P8-6 (Algo) Recording Journal Entries Related to Various Long-Lived Assets LO8-2, 8-3, 8-6 [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 $41,600 cash (estimated useful life, eight years). b. On January 1, purchased another business for $172.000 cash, including $12,000 for goodwill. The assets included occounts receivable with a fair value of $13,000 and property and equipment with a fair value of $147,000 (with a residual value of $15,435 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 $30,600. The company uses straight-line depreciation. The lease will expire in three years. (Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.) d. Total expenditures for ordinary repairs were $5,600 during the current year. e. On December 31 of the current year, sold Machine A for $6,300 cash. Original cost was $16,000; accumulated depreciation to. December 31 of the prior year was $10,320 (on a straight-line basis with a $3,100 residual value and fliveyear useful life). Record the depreciation expense in transaction e(1) and the sale in transaction e(2). 6. On December 31 of the current year, paid $5,900 for a complete reconditioning of Machine B acquired on January 1 of the prior year. Original cost, $29,900; accumulated depreciation to December 31 of the prior year was $1,600 (on a straight-line basis with a $7,500 residual value and 14 -year useful life). P8.6 Part 2 2. For each of these the assets involved in transactions (a) through (1), fecord the adjusting entry for depreciation or amortization expense at the end of the current year