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D. epare the entry (or entries) to record depreciation on the building in 2020. E9.9 (LO 3) Presented below are selected transactions at Ridge Company for 2020. Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1,2017. The computer cost $45,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Jan. 1 June 30 Dec. 31 instructions Journalize all entries required on the above dates, including entries to update depreciation, where ap- plicable, on assets disposed of. Ridge Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) E9.10 (LO 3) Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2017. It has been depreciated using the straight-line method based on an estimated salvage value of $5,000 and an estimated useful life of 5 years. Instructions Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations a. Sold for $31,000 on January 1, 2020. b. Sold for $31,000 on May 1, 2020. c. Sold for $11,000 on January 1, 2020 d. Sold for $11,000 on October 1, 2020. E9.11 (LO 4) On July 1, 2020, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 DO IT! Exercises DO IT! 9.1 (LO 1) Lofton Company purchased a delivery truck. The total cash payment was s2790 including the following items. Negotiated purchase price Installation of special shelving Painting and lettering $24,000 1,100 900 Motor vehicle license 100 Annual insurance policy 500 Sales tax 1,300 $27,900 Total paid Explain how each of these costs would be accounted for. DO IT! 9.2a (LO 2) On January 1, 2020, Emporia Country Club purchased a new riding mowe $15,000. The mower is expected to have an 8-year life with a $3,000 salvage value. What jo entry would Emporia make at December 31, 2020, if it uses straight-line depreciation? DO IT! 9.2b (LO2) Pinewood Corporation purchased a piece of equipment for $70,000. It esti an 8-year life and a $2,000 salvage value. At the end of year four (before the depreciation adjust it estimated the new total life to be 10 years and the new salvage value to be $6,000. Comp

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