A partial balance sheet is presented for Withers Industries.

€¢ The delivery truck was purchased on June 30, 2006, and is being depreciated over four years using the straight-line method. Salvage value was estimated at $5,000.
€¢ The office equipment was purchased on January 2, 2006, and is being depreciated over five years using the double-declining-balance method. Salvage value was estimated at $4,000.
€¢ The factory machinery was purchased on January 2, 2005, and is being depreciated over ten years using the straight-line method. Salvage value was estimated at $8,000.
€¢ The remaining useful life on the patent is seven years.
Required:
(a) On July 31, 2009, Withers sold the delivery truck for $9,000 cash. Prepare any necessary journal entries to record this sale.
(b) On December 1, 2009, Withers purchased land and a building for a combined cost of $400,000 by paying $100,000 cash and signing a note for the balance. An appraiser estimates the values of the building and land are, respectively, $302,500 and $247,500. Withers plans to use the building for ten years, at which time the building will probably be worth $50,000. Withers plans to use straight-line depreciation on the building. Journalize this purchase.
(c) Record all necessary depreciation and amortization entries on December 31, 2009.
(d) Prepare a partial balance sheet for Withers on December 31, 2009.
(e) How did the 2009 transactions affect Wither€™s Income Statement?
(f) What are the average useful life and the average age of each category of long-term asset, with the exception of land?

Withers Industries Partial Balance Sheet December 31, 2008 Property, Plant & Equipment Delivery Truck Less Accumulated Depreciation Office Equipment Less Accumulated Depreciation Factory Machinery Less Accumulated Depreciationn S 35,000 (18,70) $16,250 s 45,000 35,280 9,720 $100,000 (36,800)63,200 $89,170 Total Property Plant & Equipment Intangible Assets Patents S 7,000