Part 1 (Use the annual report of Johnson &Johnson) Assume that one of the fixed assets listed in your company's balance sheet will be disposed of. Please provide the journal entry for the disposition of that asset. (You may have to look in the notes to the financial statements to see what the amount of accumulated depreciation is.) Next, assume that the company will sell the fixed asset for a gain of $20,000. Please provide the journal entry for the sale of that asset at a $20,000 gain.

Part 2 There are times when the cost of the fixed assets of the business are exactly equal to the amount in the related accumulated depreciation account. Please let us know when an entry should be made to remove the cost and the accumulated depreciation from the accounts. Also, let us know if it is permissible to record additional depreciation on the assets if they are still useful to the business. Please let us know why or why not.