Moreau Lock & Key Ltd. has a hefty investment in security equipment, as reported in the company's

Question:

Moreau Lock & Key Ltd. has a hefty investment in security equipment, as reported in the company's at December 31, 2016:
Property, plant, and equipment, at cost:
Land .................................................................................................................... $ 200,000
Buildings ................................................................................................................ 310,000
Less Accumulated depreciation ............................................................................ (40,000)
Security equipment ................................................................................................ 620,000
Less Accumulated depreciation ........................................................................... (370,000)
In early October 2017, Moreau Lock & Key purchased additional security equipment at a cost of $80,000. The company depreciates buildings by the straight-line method over
20 years with a residual value of $70,000. Due to obsolescence, security equipment has a useful life of only eight years and is being depreciated by the double-diminishing-balance method with zero residual value.
Requirements
1. How will Moreau Lock & Key's equipment purchase be recorded? What will the 2017 depreciation expense be?
2. Report property, plant, and equipment on the company's December 31, 2017, Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...