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(A4Q1) Arnison Company has a December 31 fiscal year end and follows ASPE. The following selected transactions are related to its property, plant, and equipment in 2024:

Jan. 12	All of the companys light bulbs were converted to energy-efficient bulbs for $2,200. Arnison expects that this will save money on its utility bills in the future.
Feb. 6	Paid $5,400 to paint equipment that had started to rust.
Apr. 24	An air conditioning system was installed in the factory for $75,000.
May 17	Safety training was given to factory employees on using the equipment at a cost of $3,100.
July 19	Windows broken in a labour dispute (not covered by insurance) were replaced for $5,900.
Aug. 21	Paid $26,000 to convert the companys delivery vehicles from gasoline to propane. Arnison expects this will substantially reduce the vehicles future operating costs and consequently improve efficiency, but it will not extend the vehicles useful lives.
Sept. 20	The exhaust system in a delivery vehicle was repaired for $2, 700.
Oct. 25	New parts were added to equipment for $20,000. Arnison expects this will increase the equipments useful life by four years.
Dec. 31	After recording annual depreciation. Arnison reviewed its property, plant, and equipment for possible impairment. Arnison determined the following: Land that originally cost $200, 000 had previously been written down to $175,000 in 2021 as a result of a decline in the recoverable amount. The current recoverable amount of the land is $220,000. The recoverable amount of equipment that originally cost $150,000 and has accumulated depreciation of $62,500 is $50,000.

Instructions

For each of these transactions. Indicate if the transaction increased (+) or decreased (-) Land; Building; Equipment; Accumulated Depreciation; total property, plant, and equipment (PP&E); and profit, and by how much. If the item is not changed, write NE to indicate there is no effect. Use the following format, in which the first one has been done for you as an example

Transaction	Land	Building	Equipment	Accumulated Depreciation	Total PP&E	Profit
Jan. 12	NE	NE	NE	NE	NE	-$2,200

Prepare journal entries to record the above transactions. All transactions are paid in cash.

Assume that Arnison also purchases equipment with an expected useful life of 12 years.

Assume also that the equipments engine will need to be replaced every four years.

Which useful life should Arnison use when calculating depreciation on the equipment? Explain.

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