Record property, plant, and equipment transactions P6 53B Schmaltz Cable Companys balance sheet reports the following assets under Property, Plant, and Equipment Land, Buildings, Office Furniture, Communication Equipment, and Televideo Equipment The company has a separate accumulated depreciation account for each of these assets except land Assume that Schmaltz Cable completed the following transactions 2017 Jan 4 Sold communication equipment with accumulated depreciation of $85,000 (cost of $96,000) for $18,000 Purchased new equipment for $118,000 June 30 Sold a building that had cost $495,000 and had accumulated depreciation of $255,000 through December 31 of the preceding year Depreciation is computed on a straight line basis The building has a 40 year useful life and a residual value of $95,000 The company received $50,000 cash and a $250,000 note receivable Nov 4 Purchased used communication and televideo equipment from Rogers Cable Company Total cost was $80,000 paid in cash An independent appraisal valued the communication equipment at $75,000 and the televideo equipment at $25,000 Dec 31 Depreciation is recorded as follows Equipment is depreciated by the double diminishing balance method over a five year life with zero residual value Depreciation is recorded separately on the equipment purchased on January 4 and on November 4 Requirement Record the transactions in Schmaltz Cables journal How does management choose which depreciation method to use

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Record property, plant, and equipment transactions P6-53B Schmaltz Cable Companys balance sheet reports the following assets under Property, Plant, and Equipment: Land, Buildings, Office Furniture,

Record property, plant, and equipment transactions

P6-53B Schmaltz Cable Companys balance sheet reports the following assets under Property, Plant, and Equipment: Land, Buildings, Office Furniture, Communication Equipment, and Televideo Equipment. The company has a separate accumulated depreciation account for each of these assets except land. Assume that Schmaltz Cable completed the following transactions:

2017
Jan. 4	Sold communication equipment with accumulated depreciation of $85,000 (cost of $96,000) for $18,000. Purchased new equipment for $118,000.
June 30	Sold a building that had cost $495,000 and had accumulated depreciation of $255,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $95,000. The company received $50,000 cash and a $250,000 note receivable.
Nov. 4	Purchased used communication and televideo equipment from Rogers Cable Company. Total cost was $80,000 paid in cash. An independent appraisal valued the communication equipment at $75,000 and the televideo equipment at $25,000.
Dec. 31	Depreciation is recorded as follows:
	Equipment is depreciated by the double-diminishing-balance method over a five-year life with zero residual value. Depreciation is recorded separately on the equipment purchased on January 4 and on November 4.