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PA$9-3($Algo$)$ Analyzing and Recording Long$-$Lived Asset Transactions with Partial$-$Year Depreciation $[$LO $9-2,$ LO $9-3,$ LO $9-6]$

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Precision Construction entered into the following transactions during a recent year.

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January $2$Purchased a bulldozer for $$268,000$ by paying $$29,000$ cash and signing a $$239,000$ note due in five years.January $3$Replaced the steel tracks on the bulldozer at a cost of $$29,000,$ purchased on account. The new steel tracks increase the bulldozer's operating efficiency.January $30$Wrote a check for the amount owed on account for the work completed on January $3.$February $1$Repaired the leather seat on the bulldozer and wrote a check for the full $$1,700$ cost$.$March $1$Paid $$9,000$ cash for the rights to use computer software for a two$-$year period.

PA$9-3($Algo$)$ Part $1-$b to $3$

$1-$b$.$Prepare the journal entries for each of the above transactions.

$2.$For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization, if any, that Precision Construction should report for the quarter ended March $31.$ The equipment is depreciated using the double$-$declining$-$balance method with a useful life of five years and $$49,000$ residual value.$$The licensing right is amortized using the straight$-$line method with a useful life of two years and no residual value.

$3.$Prepare a journal entry to record he depreciation and amortization, if any, calculated$$in requirement $2.$