Lifestyle Lighting Lid. reported the following on its balance sheed at December 31. 2019:

In early July 2020, Lifestyle Lighting Ltd. expanded operations and purchased additional equipment at a cost of \(\$ 100,000\). The company depreciates buildings by the straight-line method over 20 years with residual value of \(\$ 50,000\). Due to obsolescence, the equipment has a useful life of only 10 years and is being depreciated by the double-diminishing-balance method with zero residual value.

{Requirements}
1. Journalize Lifestyle Lighting Ltd.'s property, plant, and equipment purchase and depreciation transactions for 2020. Why is land not depreciated?
2. Report property, plant, and equipment on the December 31, 2020, balance sheet.

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Property, plant and equipment, at cost: Land................ Buildings Less Accumulated depreciation.... Equipment Less Accumulated depreciation...) $ 150,000 400.000 (87,500) 600,000 (260,000)