Highland Lakes Resort reported the following on its balance sheet at December 31, 20X5: Property,…

Highland Lakes Resort reported the following on its balance sheet at December 31, 20X5: Property, plant, and equipment, at cost: Land………………………………………………… $ 140,000 Buildings………………………………………….. 700,000 Less: Accumulated depreciation…………… (340,000) Equipment………………………………………… 400,000 Less: Accumulated depreciation…………… (260,000) In early July 20X6, the resort expanded operations and purchased additional equipment at a cost of $100,000. The company depreciates buildings by the straight-line method over 20 years with residual value of $80,000. Due to obsolescence, the equipment has a useful life of only 10 years and is being depreciated by the double-declining-balance method with zero residual value. Required 1. Journalize Highland Lakes Resort s plant asset purchase and depreciation transactions for 20X6. 2. Report plant assets on the December 31, 20X6, balance sheet.

 

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