Russell Freight-way provides freight service. The company’s balance sheet includes Land, Buildings, and Motor-Carrier Equipment. Russell uses a separate accumulated depreciation account for each depreciable asset. During 2014, Russell Freight-way completed the following transactions:

Jan 1 Traded in motor-carrier equipment with accumulated depreciation of $83,000 (cost of $136,000) for new equipment with a cash cost of $136,000. Russell received a trade-in allowance of $63,000 on the old equipment and paid the remainder in cash.

Jul 1 Sold a building that cost $565,000 and had accumulated depreciation of $265,000 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 $45,000. Russell received $90,000 cash and a $620,000 note receivable. Oct 31 purchased land and a building for a cash payment of $400,000. An independent appraisal valued the land at $140,000 and the building at $310,000.

Dec 31 Recorded depreciation as follows:

New motor-carrier equipment has an expected useful life of 1 million kilometers and an estimated residual value of $24,000. Depreciation method is the units-of-production method. During the year, Russell drove the truck 180,000 kilometers.

Depreciation on buildings is straight-line. The new building has a 40-year useful life and a residual value equal to $20,000.

Requirement

Record the transactions in Russell Freight-way’s journal. (Round your depreciation expense to the nearest whole dollar.)