During the current year ending on December $31,$ BSP Company completed the following transactions:

a$.$ On January $1,$ purchased a patent for $$26,000$ cash $($estimated useful life, five years$).$

b$.$ On January $1,$ purchased another business for $$160,000$ cash, including $$12,000$ for goodwill. The assets included

accounts receivable with a fair value of $$12,000$ and property and equipment with a fair value of $$136,000($with a

residual value of $$14,280$ and estimated useful life of $10$ years$).$ The company assumed no liabilities. Goodwill has an

indefinite life.

c$.$ On December $31,$ constructed a storage shed on land leased from D$.$ Heald. The cost of the shed was $$17,600.$ The

company uses straight$-$line depreciation. The lease will expire in five years. $($Amounts spent to enhance leased property

are capitalized as intangible assets called Leasehold Improvements.$)$

d$.$ Total expenditures for ordinary repairs were $$4,800$ during the current year.

e$.$ On December $31$ of the current year, sold Machine A for $$7,200$ cash. Original cost was $$18,000$; accumulated

depreciation to December $31$ of the prior year was $$10,800($on a straight$-$line basis with a $$4,500$ residual value and

five$-$year useful life$).$ Record the depreciation expense in transaction e$(1)$ and the sale in transaction e$(2).$

$f.$ On December $31$ of the current year, paid $$6,600$ for a complete reconditioning of Machine $B$ acquired on January $1$ of

the prior year. Original cost, $$49,000$; accumulated depreciation to December $31$ of the prior year was $$2,500($on a

straight$-$line basis with a $$9,000$ residual value and $16-$year useful life$).$

P$8-6$ Part $2$

For each of these the assets involved in transactions $($a$)$ through $(f),$ record the adjusting entry for depreciation or amortization

expense at the end of the current year.

Note: If no entry ls requlred for a transactlon$/$event$,$ select $"$No journal entry requlred" In the flrst account fleld.

Journal entry worksheet

Record $$26,000$ purchase of patent for cash on January $1.$

Note: Enter debits before credits.