Hyslop Corp. purchased land with two buildings

Question 1:Hyslop Corp. purchased land with two buildings on it as a factory site for $460,000. The property tax assessment on this property was $250,000 for the land and $110,000 for the building. It took six months to tear down the old buildings and construct the factory.The company paid $50,000 to raze the old buildings and sold salvaged lumber for $6,300. Legal fees of $1,850 were paid. Payments to an engineering firm – $2,200 for a land survey and $82,000 for factory plans. The land survey had to be made before final before final plans could be drawn.The liability insurance premium that was paid during construction of the building was $900. The contractors charge for construction was $3,640,000. The construction cost were 55% attributable to the building, 35% to building HVAC system and 10% to the solar panel roof. Interest costs of $170,000 were incurred to finance the construction.Required:Determine the land and building costs as they should be recorded on the books of Hyslop Corp. Assume the land survey was for the building.Question 2:On January 1, 2016 the accounting records of Stiedl Ltd. Included a debit of $15,000,000 in the building account and $12,000,000 in related accumulated depreciation. The building was purchased in January 1976 for $15,000,000 and was estimated to have a 50 year life with no residual value. Stiedl uses straight line depreciation. During 2016 the following costs were incurred:1. The original roof of the building was removed and replaced with a new roof. The old roof had an estimated cost of $1,000,000 (included in building cost). The new, more energy efficient roof, cost $2,500,000 and is expected to have a 15 year life.2. The ongoing frequent repairs on the building during the years were $33,000.3. The buildings old heating system was replaced with a new one. The new HVAC system cost $700,000 and has an estimated life of 7 years with no residual value. The estimated cost of the old HVAC is unknown.4. A natural gas explosion caused $44,000 in damage to the building. The major repairs did not change the estimated value or life of the building.Required:Prepare the required journal entries for the transactions noted above.Question 3:On January 15, 2016, a second hand machine was purchased for $77,000. Before being put into service, the equipment was overhauled at a cost of $5,200, and additional costs of $400 for direct labour and $800 for direct materials in fine tuning controls. The machine has an estimated residual value of $5,000 at the end of its 5 year useful life. The machine is expected to operate for 100,000 hours before it will be replaced and is expected to produce 1.2 million units in this time.The company has an October 31st year end and depreciation is calculated to the nearest half month.Operating data for the machine is provided below.Year Hours of Operation Units produced2016 10,000 110,0002017 20,000 270,0002018 20,000 264,0002019 20,000 310,0002020 18,000 134,0002021 12,000 112,000Required:1. Calculate the depreciation charges for each fiscal year under each of the following depreciation methods:a. Straight – lineb. Declining balance at 40%c. Activity method – based on units produced2. What is the carrying value of the machine of October 31, 2019 statement of financial position under each method above.Question 4:Consider the following independent situations for Fletch Inc.1. Fletch purchased equipment in 2007 for $120,000 and an estimated $12,000 residual value at the end of its 10 year useful life. At December 31, 2013 there was $75,600 in accumulated depreciation using straight line depreciation. On March 31, 2014, the equipment was sold for $28,000.2. Fletch sold a piece of machinery for $10,000 on July 31, 2014. The machine originally cost $38,000 on January 1, 20016. It was estimated the machine would have a useful life of 12 years with a residual value of $2,000. Straight line depreciation was used.3. Fletch sold office equipment that had a carrying amount of $3,500 for $5,200. The office equipment originally cost $12,000 and it is estimated that it would cost Fletch $16,000 to replace the equipment.Required:Prepare the appropriate journal entries to record the disposition of PP&E