Answer the following questions regarding Reporting and Analyzing Long-Lived Assets. At December… 1 answer below »

Answer the following questions regarding Reporting and Analyzing Long-Lived Assets.

At December 31, 2017, Monty Corporation reported the following plant assets.

Land

$ 4,683,000

Buildings

$26,600,000

Less: Accumulated depreciation—buildings

18,614,925

7,985,075

Equipment

62,440,000

Less: Accumulated depreciation—equipment

7,805,000

54,635,000

Total plant assets

$67,303,075

————–

During 2018, the following selected cash transactions occurred.

Apr.

1

Purchased land for $3,434,200.

May

1

Sold equipment that cost $936,600 when purchased on January 1, 2011. The equipment was sold for $265,370.

June

1

Sold land for $2,497,600. The land cost $1,561,000.

July

1

Purchased equipment for $1,717,100.

Dec.

31

Retired equipment that cost $1,092,700 when purchased on December 31, 2008. No salvage value was received.

Journalize the transactions. Monty uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement.(Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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