ents occurr X Data Table de explan Accumulated Balance Sheet Depreciation Estimated Category Cost Through 12/31/2018 Useful Life Equipment $ 900,000 $ 576,000 5 Years Machinery 242,500 160,000 6 Years Vehicles 119,400 70,200 5 Years Leasehold Improvements $ 57,900 19,300 3 Years Building $ 9,425,000 1,950,000 25 Years Land $ 4,810,000 N/A N/A Estimated Residual Depreciation Value Method $ 45,000 Double-declining balance 2,500 Straight-line 2,400 Straight-line -- Straight-line 1,300,000 Straight-line N/A N/A Print Done X i More Info first, the 1. On February 1, Stuart sold the vehicles to Pure Produce, Inc. for $11,000. 2. On March 31, all of Stuart's equipment and machinery was destroyed by a fire in one of its facilities. 3. On May 1, the equipment was replaced at a cost of $630,000 and the machinery cost the company $272,500 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. Print Done then continue to the next question. Requirement a. Prepare the journal entries required to record each of the above events and to record depreciation expense at the end of the year. (Record debits first, then credits. Exclude explanations from any journal entries.) Event 1. On February 1, 2019, Stuart sold the vehicles to Pure Produce, Inc. for $11,000. First prepare the journal entry to recognize depreciation expense on the vehicles up to the date of sale. (Round your answer to the nearest whole dollar.) Account February 1, 2019 Now prepare the journal entry to record the sale of the vehicles. Account February 1, 2019 Event 2. On March 31, 2019, all of Stuart's equipment and machinery was destroyed by a fire in one of its facilities. First prepare the journal entry to recognize depreciation expense on the equipment and machinery up to the date of the fire. (Prepare a coumpound entry.) Account March 31, 2019 Prepare the journal entry to record the derecognition of the equipment. Do not record the derecognition of the machinery. We will do that in the next step. Account March 31, 2019 Prepare the journal entry to record the derecognition of the machinery. Account March 31, 2019 Event 3. On May 1, 2019, the equipment was replaced at a cost of $630,000 and the machinery cost the company $272,500 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. Account May 1, 2019 Prepare the journal entry required to record depreciation expense at the end of the year. (Round your answers to the nearest whole dollar.) Account December 31, 2019