Tesla's PP&E as of the beginning of 2021 is summarized below:

Assets	Acquisition Date	Cost	Residual	Depreciation Method	Useful life
Truck	1/1/2018	$100,000	$20,000	Straight-line	7
Solar Energy Systems	1/1/2019	$8,000,000	$100,000	Straight-line	10
GigaFactory	1/1/2020	$10,000,000	$1,000,000	Double-declining	20

Tesla’s 2021 transactions with regard to PP&E are as follow:

(Jan 1, 2021) Purchased a bundle of Building and Machinery, for $1,200,000 in cash. The stand-alone fair values of those assets are $1,000,000 and $600,000, respectively. Details for setting up depreciation schedules for Building and Machinery are summarized below:

Assets	Acquisition Date	Cost	Residual	Depreciation Method	Useful life
Building	1/1/2021	?	$100,000	Sum-of-the years’-digits	15
Machinery	1/1/2021	?	$40,000	Unit-of production	10

(Dec 31, 2021) Sudden changes in the operational and market conditions indicate that the sum of undiscounted future cash flows from GigaFactory is now estimated at $5,000,000. The fair value of the GigaFactory as of the date is $4,000,000. After recognizing depreciation expense for 2021 as scheduled, Tesla wrote-off the GigaFactory. The remaining service life is reduced to additional 8 years and the residual value is updated to $500,000. Depreciation for the Gigafactory on these new parameters will start from 2022 with the double-declining method.

*Machinery's estimated total production capacity is 80,000 units of cars. During 2021, Tesla produced a total of 20,000 units using the Machinery.

Tesla’s 2022 transactions with regard to PP&E are as follow:

(Jun 30, 2022) Truck was sold for $50,000.

*During 2022, Tesla produced a total of 10,000 units using the Machinery.

1. Set up amortization schedule for each asset using the following template:

(Example: Truck)

Truck
Fiscal yr ending:	Depreciation Expense	Accumulated Depreciation	Net Book Value
12/31/2018
:
12/31/2024

2. Prepare journal entries for 2021.
3. Summarize book values of the fixed assets as of Dec 31, 2021.

31-Dec-21
Asset	Historical Cost	(less: Accu. Dep)	Net Book Value
Truck
Solar Energy Systems
GigaFactory
Building
Machinery

Answer rating: 100% (QA)

1 Truck Depreciation Asset Value Residual Value years 100000 200007 Asset Value Residual Valueyears ... View the full answer