Please show your work !!

II. Santos Corporation had the following two exchanges of property, plant, and equipment during 2023:

Assets Given Assets Received

a. Land Cost $1,000,000 Land Fair Value $1,000,000

Fair value $1,000,000

Building Cost $4,800,000 Building Fair Value $3,000,000

Accumulated depreciation $2,160,000

Fair value $3,000,000

Transaction a lacks commercial substance.

b. Equipment Cost $540,000 Land Fair Value $520,000

Accumulated depreciation $460,000

Fair value ?

Cash $340,000

Transaction b has commercial substance.

Requirement:

Prepare the journal entries to record the two exchanges.

III. (24 points) On July 1, 2023, Saechao Company purchased for $2,000,000 equipment having an estimated useful life of 6years with an estimated salvage value of $200,000. Depreciation is taken for the portion of the year the asset is used.

Instructions

Calculate the depreciation expense for 2023 and 2024 using the:

1.Straight-line method

2. Sum-of-the-years'-digits method.

3.Double-declining balance method.

Please show your work !!

II. (16 points) Santos Corporation had the following two exchanges of property, plant, and equipment during 2023:

Assets Given Assets Received

a. Land Cost $1,000,000 Land Fair Value $1,000,000

Fair value $1,000,000

Building Cost $4,800,000 Building Fair Value $3,000,000

Accumulated depreciation $2,160,000

Fair value $3,000,000

Transaction a lacks commercial substance.

b. Equipment Cost $540,000 Land Fair Value $520,000

Accumulated depreciation $460,000

Fair value ?

Cash $340,000

Transaction b has commercial substance.

Requirement:

Prepare the journal entries to record the two exchanges.