Moreau Lock & Key Ltd. has a hefty investment in security equipment, as reported in the company's balance sheet at December 31, 2013:

Property, plant, and equipment, at cost:

Land ........................................................................................................ $ 200,000

Buildings ................................................................................................. 310,000

Less Accumulated depreciation ............................................................... (40,000)

Security equipment ................................................................................. 620,000

Less Accumulated depreciation ................................................................ (370,000)

In early October 2014, Moreau Lock & Key purchased additional security equipment at a cost of $80,000. The company depreciates buildings by the straight-line method over 20 years with a residual value of $70,000. Due to obsolescence, security equipment has a useful life of only eight years and is being depreciated by the double-diminishing-balance method with zero residual value.

Requirements

1. How will Moreau Lock & Key's equipment purchase be recorded? What will the 2014 depreciation expense be?

2. Report property, plant, and equipment on the company's December 31, 2014, balance sheet.