Prepare the entries to record one year depreciation expense

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For each separate case, record an adjusting entry (if necessary).

Point 1: Barga Company purchases $34,000 of equipment on January 1. The equipment is expected to last five years and be worth $4,800 at the end of that time.

Point 2: Welch Company purchases $11,400 of land on January 1. The land is expected to last forever.

Question 1: Prepare the entries to record one year's depreciation expense of $5,840 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM132473406

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