The JHP Company purchased a building, some office equipment, two cranes, and some land on January 1, 1996, for a total of $1 million cash. JHP has obtained the following appraisals of these assets. Asset FMV ON 1/1/96 Estimated Life Estimated Salvage Value Building $300,000 20 years $75,000 Office equipment 150,000 3 years 35,000 Crane 75,000 5 years 15,000 Crane 75,000 5 years 15,000 Land 600,000 Indefinite 15,000 JHP company uses the straight-line method to depreciate fixed assets. REQUIRED:

a. Prepare the journal entry to record the purchase.

b. Prepare the journal entry to record depreciation expense for each type of asset for the year ended December 31, 1996.

c. Assuming that all of these assets are still held as of December 31, 1999, present these fixed assets as they would be shown on the December 31, 1999, balance sheet.