Question $1(15$ marks$)$

EQC purchased the following assets on January $1,$ Year $1$:

Purchased equipment for $$84,000.$ This equipment is expected to be in service for $5$ years, and the residual value is $$24,000.$ EQC will depreciate this equipment using the double$-$declining balance method.

Purchased a building for $$460,000.$ It will be depreciated over $20$ years using the straight$-$line method. The residual value is $$160,000.$

Purchased an ocean$-$going tugboat for $$850,000.$ It is expected to provide $100,000$ hours of service over its useful life and have a residual value of $$120,000.$ It will be depreciated using the units of production method. In Year $1,$ it was used for $4,380$ hours.

Required

Prepare the three December $31$ year$-$end adjusting journal entries for these assets. Please leave one empty row between each journal entry.