P9-2B. At December 31, 2013, Tong Corporation reported these plant assets.

Land $ 4,000,000

Buildings $28,800,000

Less: Accumulated depreciationbuildings 11,520,000 17,280,000Equipment 48,000,000

Less: Accumulated depreciationequipment 5,000,000 43,000,000

Total plant assets $64,280,000

During 2014, the following selected cash transactions occurred

Apr. 1 Purchased land for $2,600,000.

May 1 Sold equipment that cost $750,000 when purchased on January 1, 2009.

The equipment was sold for $367,000.

June 1 Sold land purchased on June 1, 2002, for $2,000,000.

The land cost $800,000. Sept. 1 purchased equipment for $840,000.

Dec. 31 Retired equipment that cost $470,000 When purchased on December 31, 2004.

No salvage value was received.

Instructions

a) Journalize the transactions. ( Hint: You may wish to set up T-accounts, post beginning balances, and then post 2014 transactions.) Tong uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement.

(b) Record adjusting entries for depreciation for 2014.

) Prepare the plant assets section of Tongs balance sheet at December 31, 2014.

*P9-7B In recent years Howard Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used.

Information concerning the machines is summarized in the table below.

Salvage Useful Life Machine Acquired Cost Value (in years) Depreciation Method 1 July 1, 2012 $68,000 $5,000 7 Straight-line

2 Apr. 1, 2013 64,000 6,000 4 Declining-balance

3 Sept. 1, 2013 84,000 4,000 8 Units-of-activity

For the declining-balance method, Howard Company uses the double-declining rate.

For the units-of-activity method, total machine hours are expected to be 40,000.

Actual hours of use in the first 3 years were: 2013, 1,200; 2014, 6,400; and 2015, 7,000.

Instructions

(a) Compute the amount of accumulated depreciation on each machine at December 31, 2015.

(b) If machine 2 was purchased on November 1 instead of April 1, what would be the depreciation expense for this machine in 2013? In 2014? (Round to the nearest dollar.)