Reference no: EM132481153
At December 31, 2020. Sarasota Company reported the following as plant assets
Land $ 3,640.000
Buildings $28,180.000
Less: Accumulated depreciation-buildings 11,820.000 16,360.000
Equipment 48,740.000
Less:
Accumulated depreciation -equipment 4,780.000 43,960.000
Total plant assets $63,960.000
During 2021, the following selected cash transactions occurred
April 1 Purchased land for $2.170.000
May 1 Sold equipment that cost $7501000 when purchased on January 1. 2017. The equipment was sold for $450.000.
June 1 Solo land purchased on June 1. 2011 for $1.510.000. The land cost $390,000!
July 1 Purchased equipment for $2.510.000
Dec. 31 Retired equipment that cost $498.000 when purchased on December 31, 20 21.
Question 1: The company received no proceeds related to salvage company uses straight line depreciation for buildings and equipment. Buildings are estimated to have 50 year life and no salvage value. Equipment have 10 year useful life. Journalize the transactions