Reference no: EM13852422

Problem:

At December 31, 2014, Navaro Corporation reported the following plant asses.

Land                                                                                                        $3,111,000

Buildings                                                                     $34,770,000

Less: Accumulated depredation-buildings                           12,366,225              22,403.775

Equipment                                                                    41.480,000

Less: Accumulated depredation-equipment                         5,185,000                36.295,000

Total plant assets                                                                                        $61,809.775

During 2015, the following selected cash transactions occurred.

Apr. 1 Purchased land for $2,281,400.

May 1 Sold equipment that cost 5622,200 when purchased on January 1, 2008. The equipment was sold for $176,290. June 1 Sold land for $1,659,200. The land cost $1,037,000.

July 1 Purchased equipment for $1,140,700.

Dec. 31 Retired equipment that cost $725,900 when purchased on December 31, 2005. No salvage value was received.

Record adjusting entries for depreciation for 2015.

Journalize the transactions. Navaro uses straight-line depredation 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.