Casting Crown Construction entered into the following transactions during a rece

Question

Casting Crown Construction entered into the following transactions during a recent year.
January 2 Purchased a bulldozer for $200,000 by paying $20,000 cash and signing a $180,000 note.

January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account.

January 30 Wrote a check for the amount owed on account for the work completed on January 3.

February 1 Replaced the seat on the bulldozer and wrote a check for the full $600 cost.

March 1 Paid $2,400 cash for the rights to use computer software for a two-year period.



For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Casting Crown Construction should report for the quarter ended March 31. The equipment is depreciated using the double-declining-balance method with a useful life of five years and $40,000 residual value. (Omit the "$" sign in your response.)

Equipment: $
Licensing Rights :$

Requirement 3:

Prepare a journal entry to record the depreciation calculated in requirement 2. (Omit the "$" sign in your response.)

Explanation / Answer

Depreciation Amounts for the quarter Jan - March Equipment: $ 22,000 Licensing Rights :$100 Requirement 3: Prepare a journal entry to record the depreciation calculated in requirement 2. (Omit the "$" sign in your response.) Depreciation Expense - Equipment $22,000 Accumulated Depreciation – Equipment $22,000

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