Part C. DepreciationOn January 2, 2012, Dickens Company purchased a building and land for $740,000. The mostrecent appraisal values for the building and the land are $520,000 and $280,000, respectively.The building has an estimated useful life of 20 years and a salvage value of $60,000.1. Assuming cash transactions and straight-line depreciation, prepare journal entries torecord:a. Purcase of the building and land on January 2, 2012.b. Depreciation expense on December 31, 2012.2. Assume that after four years the land and building were sold for $585,000. Prepare thejournal entry to record the sale.

Given that, The purchase cost of Land and building = $740000 Apprised value of Building = $520000…

Answered: Part C. Depreciation On January 2,…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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