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Carr Inc has the following plant asset accounts Land Buildings and Equipment with a separate accumulated depreciation account for each of these except land

Carr, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except land. Carr completed the following transactions: Jan 2 Traded in equipment with accumulated depreciation of $65,000 (cost of $136,000) for similar new equipment with a cash cost of $175,000. Received a trade-in allowance of $75,000 on the old equipment and paid $100,000 in cash. Jun 30 Sold a building that had a cost of $655,000 and had accumulated depreciation of $130,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $275,000. Carr received $115,000 cash and a $405,250 note receivable. Oct 29 Purchased land and a building for a single price of $390,000. An independent appraisal valued the land at $221,100 and the building at $180,900. Dec 31 Recorded depreciation as follows: Equipment has an expected useful life of 5 years and an estimated residual value of 6% of cost. Depreciation is computed on the double-declining-balance method. Depreciation on buildings is computed by the straight-line method. The new building carries a 40-year useful life and a residual value equal to 20% of its cost. Requirement 1. Record the transactions in Carr, Inc.’s journal

May 21 2020 View more View Less

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