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Required information [The following information applies to the questions displayed below.] During the current year ending on December 31, BSP Company completed the following transactions:

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Required information [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 $30,000 cash (estimated useful life, five years). b. On January 1, purchased another business for $156,000 cash, including $5,000 for goodwill. The assets included accounts receivable with a fair value of $15,000 and property and equipment with a fair value of $136,000 (with a residual value of $14,280 and estimated useful life of 10 years). The company assumed no liablities. Goodwill has an c. On December 31, constructed a storage shed on land leased from D. Heald. The cost of the shed was $19,600. They indefinite life. 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 $5,500 during the current year. e. On December 31 of the current year, sold Machine A for $6,200 cash. Original cost was $24,000; accumulated depreciation to December 31 of the prior year was $15,760 (on a straight-line basis with a $4,300 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 $6,400 for a complete reconditioning of Machine B acquired on January 1 of the prior year. Original cost, $41,600; accumulated depreciation to December 31 of the prior year was $3,000 (on a straight-line basis with a $8,600 residual value and 11 -year useful life). On December 31 of the current year, sold Machine A for $6,200 cash. Original cost was $24,000; accumulated depreciation to December 31 of the prior year was $15,760 (on a straight-line basis with a $4,300 residual value and fiveyear useful life). Record the depreciation expense. Note: Enter debits before credits. Record the $6,200 sale of Machine A with a original cost of $24,000. Note: Enter debits before credits

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