1. The city uses the following annual straight-line depreciation rates: Buildings, 2.5 percent; Equipment, 10 percent (equipment purchased during the year need not be depreciated because it was not held for more than 6 months of the year). Apply these rates to the original cost of buildings and equipment as of December 31, 2016, assuming no residual or salvage value.

Buildings $1,650,000, Equipment$1,340,400

What are the journal entries