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total plant asset is written in blue in the instruction part in the right end corner that is $61,072,000

19-2B At December 31, 2011, Craig Corporation reported these plant assets. Land $ 4,000,000 Buildings $28,800,000 Less: Accumulated depreciation-buildings 11,520,000 17,280,000 Equipment 48,000,000 Less: Accumulated depreciation equipment 5,000,000 43,000,000 Total plant assets $64,280,000 During 2012, the following selected cash transactions occurred. Apr. May i Sold equipment that cost $750,000 when purchased on January 1, 2007. The equipment was sold for $367,000. June 1 Sold land purchased on June 1, 2000, for $1,800,000. The land cost $800,000. Sept. 1 Purchased equipment for $840,000. Dec. 31 Retired fully depreciated equipment that cost $470,000 when purchased on December 31, 2002. No salvage value was received. Problems: Set B 493 1 Instructions (a) Journalize the transactions. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2012 transactions.) Craig uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (b) Record adjusting entries for depreciation for 2012. (Note: The only assets that are fully depreciated are those that were retired on December 31.) (e) Prepare the plant assets section of Craig's balance sheet at December 31, 2012. (c) Tot plantes $51,072,000

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