Part 1 (Use the annual report of your selected company)

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.

JOHNSON \& JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Dollars in Millions) (Note 1) Employee Benefit Plans: $461 million, $1,198 million and $21 million, Derivatives 8 Hedges: $30 million, $263 million and $252 million. i CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1) \begin{tabular}{|c|c|c|c|} \hline & 2022 & 2021 & 2020 \\ \hline \multicolumn{4}{|l|}{ Cash flows from operating activities } \\ \hline Not earnings & $17,941 & 20,878 & 14,714 \\ \hline \multicolumn{4}{|l|}{ Adjustments to reconcile net eamings to cash flows from ceenating activities: } \\ \hline Stock baged compensation & 1,138 & 1,135 & 1,005 \\ \hline Asaet wnite-downs & 1,216 & 989 & 283 \\ \hline Contingent consiberation reversal & - & - & (1,148) \\ \hline Deferred tax provision & (1,663) & (2,079) & (1,141) \\ \hline Credit bases and acoounts receivable alowances & (17) & (48) & 63 \\ \hline \multicolumn{4}{|l|}{ Chenges in assets and labilitis, net of effects from acepusitions and divestitures: } \\ \hline (Increase) Decrease in acoounts receivable & (1,290) & (2,402) & 774 \\ \hline horeage in imwentories & (2,827) & (1,248) & (265) \\ \hline horease in accoumts payable and accousd liabilites & 1,098 & 2,437 & 5,141 \\ \hline Additions to property, plant and equipment & (4,009) & (3,652) & (3,347) \\ \hline Proceeda from the disposal of assets/businesses, net & B43 & 711 & 305 \\ \hline Accuisitions, net of cash acquired (Note 18) & (17,652) & (60) & (7,323) \\ \hline Purchases of investments & (32,394) & (30,394) & (21,089) \\ \hline Sales of imvestments & 41,609 & 25,006 & 12,137 \\ \hline Credit aupport agreements activiny, net & (249) & 214 & (987) \\ \hline Other (primarily licenoes and milestones) & (229) & (508) & (521) \\ \hline Net cash used by investing activities & (12,371) & (8,683) & (20,825) \\ \hline \multicolumn{4}{|l|}{ Cash flows from financing activities } \\ \hline Dividenda to shareholders & (11,692) & (11,032) & (10,481) \\ \hline Repurchase of common stock & (6,035) & (3,456) & (3,221) \\ \hline Effect of exchange rate changes on cash and cash equhralents & (312) & (178) & 89 \\ \hline (Decrease)/increase in cagh and cagh oquivalents & (360) & 502 & (3,320) \\ \hline Cash and cash equivalents, beginning of year (Note 1) & 14,497 & 13,985 & 17,305 \\ \hline Cash and cash equivalents, end of year (Note 1) & $14,127 & 14,497 & 13,985 \\ \hline \multicolumn{4}{|l|}{ Supplemental cash flow data } \\ \hline \multicolumn{4}{|l|}{ Cash paid during the year for: } \\ \hline lnisrest & $992 & 990 & 904 \\ \hline horest, net of amount captal bed & 933 & 941 & 841 \\ \hline Income taxes & 5.223 & 4,768 & 4,619 \\ \hline \multicolumn{4}{|l|}{ Supplemental schedule of non-cash investing and financing activities } \\ \hline Treasurystockiasuedforemploysecompensationandstockopsonplans,netofcashprooseda/employeewithholdingtaxonstockawards & $2,114 & 1,811 & 1,937 \\ \hline Conversion of debt & - & - & 27 \\ \hline \multicolumn{4}{|l|}{ Acquisitions } \\ \hline Fair value of agsets acquired & $18,710 & 61 & 7,7B5 \\ \hline Fair value of liabilies assumed & (1,05B) & (1) & (432) \\ \hline Net cash paid for acquanions (Nobe 18) & $17,652 & 60 & 7,323 \\ \hline \end{tabular}