Information related to the long- term operating assets of Rivera Retail Distributors, Inc. at December 31, 2014, is as follows:

The fiscal year end of the company is December 31. The following events occurred during 2015: 1. O n February 1, 2015, Rivera sold the vehicles to Wholesale Produce, Inc. for $ 15,000. 2. O n March 31, 2015, all of Rivera€™s equipment and machinery was destroyed by a fire in one of its facilities. 3. O n May 1, 2015, the equipment was replaced at a cost of $ 625,000 and the machinery cost the company $ 420,000 to replace. The estimated useful lives and residual values remained the same as specified for the original machinery and equipment. The company paid cash for the new assets. Required » a. Prepare the journal entries required to record each of the above events and to record depreciation expense at the end of the year. b. Determine the ending net book value of Rivera€™s long- term operating assets on its December 31, 2015, balance sheet. Show the balance for each asset individually and in total.

Accumulated Depreciation Through 12/31/2014 Estimated Value S50,000 Balance Sheet Estimated Residual Depreciation Method Category Cost S 500,000 S 345,500 S 127900 Useful Life 10 Years 8 Years 5 Years Equipment S 180,000 Double-declining balance Machinery Vehicles 170,000 75,000 5,500 Straight-line 2,900 Straight-line Improvements S 65,400 Building Land S12,000,000 S 4.560,000 21,800 3,252,000 NIA. 3 years 20 years 0 Straight-line 1500,000 Straight-line N/A NIA N/A