Required information P8-6 (Algo) Recording Journal Entries Related to Various Long-Lived Assets LO8-2,8-3,8-6 (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 $21,500 cash (estimated useful life, five years). b. On January 1, purchased another business for $166,000 cash, including $7,000 for goodwill. The assets included accounts receivable with a fair value of $13,000 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 $18,600. The company uses straight-line depreciation. The lease will expire in five years. (Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.) d. Total expenditures for ordinary repairs were $4,700 during the current year. e. On December 31 of the current year, sold Machine A for $6,400 cash. Original cost was $24,000; accumulated depreciation to December 31 of the prior year was $16,640 (on a straight-line basis with a $3,200 residual value and five-year useful life). Record the depreciation expense in transaction e(1) and the sale in transaction e(2). On December 31 of the current year, paid $6,100 for a complete reconditioning of Machine B acquired on January 1 of the prior year. Original cost. $27,600; accumulated depreciation to December 31 of the prior year was $1,800 (on a straight-line basis with a $7,800 residual value and 11-year useful life). P8-6 Part 2 2. For each of these the assets involved in transactions (a) through (n), 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.