T 6 2 8 years 1 QUESTION 2 (16 marks): 2 Endblast Productions showed the following selected asset balances on December 31, 2020: 5 Land 397,520 Building 525,680 7 Accumulated depreciation, building 393,600 8 Equipment 171,920 9 Accumulated depreciation, equipment 74,400 10 1. The remaining useful life of the building is XX years with a residual value of $XXX; depreciated using the straight-line method to the nearest whole month. Remaining useful life 11 12 Residual value 13 2. The total estimated useful life of the equipment is XX years with a residual value of $XXX; Total estimated useful life 14 depreciated using the double-declining balance method to the nearest whole month. 15 Residual value 16 17 The Land and building were sold on Month 27, 2021, for $XXX cash. Date of sale Selling price 19 20 The equipment was sold on Month 2, 2021, for $XXX cash. Month of sale 21 Selling price 22 REQUIRED: 80,000 10 16,000 10/27/2021 #VALUE! 592,720 18 11/02/2021 #VALUE! 56,080 28 Debit Credit 22 REQUIRED: 23 1. Calculate depreciation from January 1, 2021 to the date of disposal (rounded to the nearest month) for both assets being sold: 24 BUILDING EQUIPMENT 25 26 2. Prepare the journal entry to record depreciation for 2021 for both assets being sold. 27 BUILDING EQUIPMENT Date Account Titles Debit Credit Date Account Titles 29 30 31 32 33 3. Calculate the carrying amount of each asset being sold at the time of the sale: ALL AMOUNTS IN THE GREEN BOXES MUST BE CELL-REFERENCED 34 Land FROM THE DATA ABOVE. ACCOUNT TITLES CAN BE TYPED-IN. 35 Building 36 Equipment 37 38 4. Record the two disposal transactions: 39 LAND AND BUILDING EQUIPMENT 40 Date Account Titles Debit Credit Date Account Titles Debit Credit 41 42 43 44 45 ALL AMOUNTS IN THE GREEN BOXES MUST BE CELL-REFERENCED FROM THE DATA ABOVE. ACCOUNT TITLES CAN BE TYPED-IN. 31 32 33 3. Calculate the carrying amount of each asset being sold at the time of the sale: 34 Land 35 Building 36 Equipment 37 38 4. Record the two disposal transactions: 39 LAND AND BUILDING 40 Date Account Titles Debit Credit 41 EQUIPMENT Account Titles Date Debit Credit 42 43 44 45 46 47 48 49 50 51 52 53 54