QUESTION 5

1. PPE depreciation and disposal:

(1)On June 30, 2021, a company sold an old equipment for $24,000. The equipment originally cost $36,000 and had accumulated depreciation to the date of disposal of $15,000.Determine gain or loss from the disposal and Prepare the journal entry on the date of sale.

(2)On May 12, Green Co. purchased for $1,620,000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property:

Current Assessed Valuation

Vendor's Original Cost

Land

$600,000

$550,000

Warehouse

400,000

370,000

Office Building

800,000

680,000

$1,800,000

$1,600,000

What are the appropriate amounts thatMooneyshould record for the land, warehouse, and office building, respectively?

(3)Silver Inc. purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been recorded for 7 years on a straight-line basis. In 2020 (year 8), it is determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time.Calculate the depreciation expense for 2020.