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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$).$