Details regarding Leroux Steel's purchases of plant and equipment items during 2014 follow:

Required
Prepare the annual adjusting entry at December 31, 2014, Leroux's year-end, for each plant and equipment item.
Analysis Component: What is the purpose of recording depreciation? If depreciation is not recorded, how would the income statement be affected?

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Plant and Equipment Estimated Sales Value at End of Estimated Useful Life Date of Purchase a. lan. 1 b. Apr. 1 C. Nov. 1 Item Machine A Machine B Machine C Cost $102,000 61,000 30,500 Estimated Useful Life 5 years 4 years 2 years 3,400 2,900