Question: redlands inc made the following investments on january 2 2012...

Redlands, Inc. made the following investments on January 2, 2012, its first year of business:

Item	Cost	Residual Value	Expected Life	Cost Allocation
Warehouse	$120	$20	25 years	Straight-line
Machine	60	10	10 years	Double-declining
Photocopier	75	5	7,000 copies	Productive output
Patent	20	0	10 years	Straight-line
Trademark	10	0	Indefinite	Not applicable

Required (A):
Record the adjusting journal entries on December 31, 2012. Redlands made 2,000 copies in 2012.
Present the depreciation and amortization expenses on the 2012 income statements.
Report the book values of the long-term assets on the December 31, 2012 balance sheet.

On January 2, 2013, Redlands,
Sold its warehouse for $111.
Sold the machine for $52.
Estimated the patent would only have value for a total of 7 years (expires on 12/31/18).

Required (B):
Compute the gain or loss on the sale of the warehouse.
Compute the gain or loss on the sale of the machine.
Present the depreciation and amortization expenses for the photocopier and patent on the 2013 income statements. Redlands made 3,000 copies in 2013.
Report the book values of the photocopier, patent, and trademark on the December 31, 2013 balance sheet.