record transaction:

1- January 1, P³ purchased an old carousel to be used at children's and corporate parties at a cost of $200,000. P³ paid $10,000 to have the carousel transported, paid $16,000 to have the carousel installed on their own truck platform which will serve as the transport and set up mechanism for the carousel, and they paid $40,000 to have the entire carousel repainted. P³ will use sum-of-the-years digits to depreciate the carousel and believes the carousel will have a 10-year life with a $25,000 residual value.

2.In March, P³ spent $76,000 on research and development of a new trademark for their new line of circus adventure theme parties. The trademark was filed with the patent and trademarks office and the legal costs of this filing were $15,000. The trademark was awarded. P³ recognizes allowable trademark costs over 10 years.

3.On May 5^th, P³ sold furniture and fixtures costing $195,000 on which there was $122,000 0f accumulated depreciation to date, for $75,000.