In $2023,$ the company acquired a building for $400$ million dollars, with a useful life of $20$ years and no salvage value. That same year, the company purchased a plant for $600$ million dollars with a useful life of $10$ years and no salvage value. However, they sold plant assets worth $25$ million dollars in $2023.$ Additionally, the company bought equipment for $2$ million dollars, also with a $10-$year useful life and no salvage value. The income tax rate is $25\%.$

For income tax reporting, the company was allowed to claim the following depreciation rates:

$-50\%$ on buildings each year for the first two years

$-40\%$ on plant assets and $60\%$ on equipment in the first year

$-60\%$ on plant assets in the second year $.$ Generate journal entires for $2024$

Answer rating: 100% (QA)

Here are the journal entries for 2024 Depreciation Expense Building Depreciation expense 400000000 x ... View the full answer