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Required information Skip to question [ The following information applies to the questions displayed below. ] During the current year ending on December 3 1

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[The following information applies to the questions displayed below.]
During the current year ending on December 31, BSP Company completed the following transactions:
On January 1, purchased a patent for $34,400 cash (estimated useful life, eight years).
On January 1, purchased another business for $166,000 cash, including $6,000 for goodwill. The assets included accounts receivable with a fair value of $12,000 and property and equipment with a fair value of $148,000(with a residual value of $15,540 and estimated useful life of 10 years). The company assumed no liabilities. Goodwill has an indefinite life.
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 three years. (Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.)
Total expenditures for ordinary repairs were $6,000 during the current year.
On December 31 of the current year, sold Machine A for $7,800 cash. Original cost was $18,000; accumulated depreciation to December 31 of the prior year was $11,760(on a straight-line basis with a $3,300 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 $7,000 for a complete reconditioning of Machine B acquired on January 1 of the prior year. Original cost, $33,500; accumulated depreciation to December 31 of the prior year was $1,700(on a straight-line basis with a $8,000 residual value and 15-year useful life).

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