You are engaged in the audit of the financlal statements of Micro Corporation for the year ended December $31,20$X$6.$ The

accompanying analyses of the Property, Plant, and Equipment and related accumulated depreclation accounts have been prepared by

the chlef accountant of the client. You have traced the beginning balances to your prior year's audit working papers.

"Depreclation expense for the year.

All plant assets are depreclated on the stralght$-$IIne basis $($no residual value taken Into consideration$)$ based on the following estimated

service Iives: bullding. $25$ years; all other Items, $10$ years. The company's policy is to take one half$-$year's depreclation on all asset

additions and disposals during the year.

Your audit revealed the following information:

The company completed the construction of a wing on the plant bullding on June $30.$ The service life of the bullding was not

extended by this addition. The lowest construction bid recelved was $$19,500,$ the amount recorded In the Bulldings account.

Company personnel constructed the addition at a cost of $$17,200($materlals$,$ $$7,900$; labor, $$5,900$; and overhead, $$3,400).$

On August $18,$$$5,400$ was pald for paving and fencing a portion of land owned by the company and used as a parkling lot for

employees. The expenditure was charged to the Land account.

The amount shown In the machinery and equipment asset retirement column represents cash recelved on September $5$ upon

disposal of a machine purchased in July $202$ for $$48,000.$ The chlef accountant recorded depreclation expense of $$3,300$ on this

machine in $206.$

Harbor City donated land and a bullding appralsed at $$140,000$ and $$440,000,$ respectlvely, to Micro Corporation for a plant On

September $1,$ the company began operating the plant. Since no costs were Involved, the chlef accountant made no entry for the

above transaction.

Required:

Prepare the adjusting journal entrles that you would propose at December $31,20$X$6,$ to adjust the accounts for the above transactlons.

Disregard Income tax implications. The accounts have not been closed. $($If no entry is required for a transactlon$/$event$,$ select $"$No

journal entry required" in the first account field. Do not round any division. Round your answers to the nearest dollar amount.$)$