Ohio Company owns 10 warehouses of similar type except for varying size. The group system of...

 

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Ohio Company owns 10 warehouses of similar type except for varying size. The group system of depreciation is applied to the 10 warehouses, and the rate is 6% each year on cost. At the end of Year 1, the asset account, Warehouses, showed a balance of $2,650,000 (residual value $150,000), and the Accumulated Depreciation account showed a balance of $1,200,000. At the start of Year 2, Warehouse #8, costing $200,000, was torn down, Materials salvaged from the demolition were sold for $26,500, and $7,500 was spent on demolition. Required Provide entries to record (a) depreciation for Year 1, (b) disposal of Warehouse #8 in Year 2, and (c) depreciation for Year 2. Ohio Company owns 10 warehouses of similar type except for varying size. The group system of depreciation is applied to the 10 warehouses, and the rate is 6% each year on cost. At the end of Year 1, the asset account, Warehouses, showed a balance of $2,650,000 (residual value $150,000), and the Accumulated Depreciation account showed a balance of $1,200,000. At the start of Year 2, Warehouse #8, costing $200,000, was torn down, Materials salvaged from the demolition were sold for $26,500, and $7,500 was spent on demolition. Required Provide entries to record (a) depreciation for Year 1, (b) disposal of Warehouse #8 in Year 2, and (c) depreciation for Year 2.