Part A: Property, plant and equipment (14 marks) 0 Indicate if the following equipment-related costs should be capitalized (included) in the equipment account for accounting purposes (2 marks) Capitalize: Yes or No (circle the correct answer for each line): Commissions paid to acquire the equipment YES NO Insurance costs while in transit (during delivery) YES NO Testing costs before the asset is used YES NO YES Installation costs when equipment purchased NO (ii) On January 1, 2016, at the start of its fiscal year, Prescott Bakery had the following accounts and balances (assume normal balances) (12 marks): Equipment (useful life 8 years) Accumulated Amortization - Equipment Land Furniture (useful life 50 years) Accumulated Amortization - Furniture $100,000 75,000 200,000 250,000 10,000 Note: amortization is only recorded at year-end and there is no residual value estimated on the above items. Prescott uses the straight-line amortization method for the above items. Requirement #1: On January 1, 2016, Prescott sold the equipment for $30,000 cash. Record the journal entry below