Casting Crown Construction entered into the following transactions during a recent year: 

January 2 Purchased a bulldozer for $200,000 by paying $20,000 cash and signing a $180,000 note 

January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account 

January 30 Wrote a cheque for the amount owed on account for the work completed on January 3 

February 1 Replaced the seat on the bulldozer and wrote a cheque for the full $600 cost 

March 1 Paid $2,400 cash for the rights to use computer software for a two-year period 

Required: 

1. Analyze the accounting equation effects and record journal entries for each of the transactions. 

2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Casting Crown Construction should report for the quarter that ended March 31. The equipment is depreciated using the doubledeclining-balance method with a useful life of five years and $40,000 residual value. 

3. Prepare a journal entry to record the depreciation and amortization calculated in requirement 2. 

4. What advice would you offer the company in anticipation of switching to IFRS in the future?