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P$8-6($Algo$)$ Recording Journal Entries Related to Various Long$-$Lived Assets L$08-2,8-3,8-6$

$[$The following information applies to the questions displayed below.$]$

During the current year ending on December $31,$ BSP Company completed the following transactions:

a$.$ On January $1,$ purchased a patent for $$50,400$ cash $($estimated useful life, nine years$).$

b$.$ On January $1,$ purchased another business for $$164,000$ cash, including $$7,000$ for goodwill. The assets included

accounts receivable with a fair value of $$11,000$ and property and equipment with a fair value of $$146,000($with a

residual value of $$15,330$ and estimated useful life of $10$ years$).$ The company assumed no liabilities. Goodwill has an

indefinite life.

c$.$ On December $31,$ constructed a storage shed on land leased from D$.$ Heald. The cost of the shed was $$21,600.$ The

company uses straight$-$line depreciation. The lease will expire in eight years. $($Amounts spent to enhance leased

property are capitalized as intangible assets called Leasehold Improvements.$)$

d$.$ Total expenditures for ordinary repairs were $$5,500$ during the current year.

e$.$ On December $31$ of the current year, sold Machine A for $$7,100$ cash. Original cost was $$24,000$; accumulated

depreciation to December $31$ of the prior year was $$16,400($on a straight$-$line basis with a $$3,500$ residual value and

five$-$year useful life$).$ Record the depreciation expense in transaction e$(1)$ and the sale in transaction e$(2).$

$f.$ On December $31$ of the current year, paid $$6,600$ for a complete reconditioning of Machine B acquired on January $1$ of

the prior year. Original cost, $$35,200$; accumulated depreciation to December $31$ of the prior year was $$2,400($on a

straight$-$line basis with a $$8,800$ residual value and $11-$year useful life$).$

For each of these the assets involved in transactions $($a$)$ through $($f$),$ record the adjusting entry for depreciation or amortization

expense at the end of the current year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Answer is complete but not entirely correct.