Recording Asset Disposal Equipment that cost $36,000 on January 1, 2015, is sold for $20,000 on June 30, 2020. It had been depreciated over a 10-year life by the straight-line method, assuming its residual value would be $3,000. A warehouse that cost $300,000, residual value $30,000, was being depreciated over 20 years by the straight-line method. When the structure was 15 years old, an additional wing was constructed at a cost of $180,000. The estimated life of the wing considered separately was 15 years, and its residual value is $20,000. The accounting period ends December 31. a. Prepare journal entries required to record the following. 1. Sale of the equipment. 2. Cost of additional wing to the warehouse; costs paid in cash. 3. Depreciation on the warehouse and its additional wing after the latter has been in use for one year. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round amounts to the nearest whole dollar. Account Name Dr. Cr. 1,650 0 Accumulated Depreciation 0 1,650 1 Depreciation Expense To update depreciation on equipment Cash Accumulated Depreciation Loss on Disposal Equipment 18,350 x = 0 x = 0 0 oooo 0 0 0 x 0 x To record disposal of original electrical wiring system 2 Building Cash 3 Depreciation Expense Accumulated Depreciation To record depreciation on warehouse Equipment Cash To record depreciation on additional wing 0 x 0 0 0 oooo 0 0 x 0 0 x * < * < 0 x 0 0 o 0 b. Show how the warehouse and additional wing is reported on the balance sheet (under the Building account) prepared immediately after the depreciation recorded in part a. Note: Do not use negative signs with your answers. Balance Sheet December 31, 2020 Building 0 x Less: Accumulated depreciation Building, wing addition 0 * $ 0 * 0 Less: Accumulated depreciation Total 0 x 0 $ 0 *