Vargo sells two products. The first (the tibed) is sold only for cash and represents a single performance obligation (sale of the product). Tibed sales for the year are 205,000 units. Tibed sells for a price of $23.90 per unit, and Vargo incurs shipping costs of $3.70 per unit sold. Vargo had sales discounts of $89,000 on tibed sales. The second is a software package (the tiderc) and is new for 2022. It has two performance obligations (sale of the software and a software update after 2 years). 59,400 units of tiderc were sold. Tiderc sells for $30 per unit (also cash sales). The standalone sales price of the software has been determined to be $25 and the standalone sales price of the update is $5. Vargo incurs a costs of $4.25 per software package. Report sales of the two products separately on the income statement (one line for tibed and one line for tiderc)

d. Vargos property plant and equipment consists of a building with a cost of $860,000 and a salvage value of $40,000 with a 15 year life purchased on 6/1/17 and a piece of equipment that cost $88,000 and a salvage value of $4,000 with a 5 year life purchased on 9/1/20. Vargo incurred delivery and installation charges of $9,000 on the equipment. Vargo spent $39,000 painting the building during 2022. On 1/1/22, Vargo revised the estimate on the life of the building. Vargo now estimates that the building will be in service until 12/31/33. On 10/1/22, Vargo exchanged the piece of equipment for a similar piece of equipment with the Eakin Company. The new equipment has salvage a salvage value of $5,000 and is expected to be taken out of service at the same time the old equipment would have been. The transaction had no commercial substance. The fair value of the equipment they gave up was $47,000. The fair value of the equipment received from Eakin was $40,000. In addition to the equipment, they received $7,000 in cash. Prepare the journal entry to record the transaction on Vargos books.

Vargo considers depreciation to be an administrative expense. Compute depreciation expense for the building and equipment for 2022. Vargo computes depreciation to the nearest month and uses the 200% (double) declining balance method for depreciation of buildings and equipment.

Please what is the answer for D?