a. Carlos Company purchases $30,000 of equipment on January 1, 2011. The equipment is expected to last five years and be worth $5,000 at the end of that time. Prepare the entry to record one year’s depreciation expense of $5,000 for the equipment as of December 31, 2011.
b. Chaves Company purchases $40,000 of land on January 1, 2011. The land is expected to last indefinitely. What depreciation adjustment, if any, should be made with respect to the Land account as of December 31, 2011?