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Part A: At the beginning of 2020, Company ABC purchased a plane for $10,000,000. During the year, the company incurred $50,000 in maintenance expenses that
Part A: At the beginning of 2020, Company ABC purchased a plane for $10,000,000. During the year, the company incurred $50,000 in maintenance expenses that resulted in no capital improvements. Assume, Company ABC will use the plane for 9 years and the salvage value of the plane is $1,000,000. Also assume the company uses the straight-line method when calculating depreciation. Record all journal entries for 2020. (6 points) e Part B: Company ABC purchased 100 acres of land for $1,000,000 at the beginning of 2020. Record all journal entries for the land over 2020. (4 points)
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