On March 1, 2020, the Ottoman Company purchased land, building, machinery and equipment for $2,000,000. According to independent appraisals, the fair values were $1,500,000 (Land), $1,200,000 (Building), $800,000 (Machinery), and $500,000 (Equipment). The following information is also provided: ASSET ESTIMATED RESIDUAL VALUE ESTIMATED USEFUL LIFE IN YEARS Land N/A N/A Building None 20 Machinery 10% of cost 10 Equipment $20,000 5 Required: Calculate depreciation expense on the building, machinery, and equipment for 2020. Show your calculations. Prepare the journal entries to record (i) depreciation on the portion of machinery sold on September 30, 2021 and (ii) the sale of machinery. Show all calculations before you prepare your journal entries. Use the below format for your journal entries. Date Accounts Debit Credit Sep 30, 2021 Sep 30, 2021
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