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Markus Company received two donations during the year. A long$-$term client donated a piece of artwork from his personal art collection to display in the company$$s entranceway as a thank$-$you for all of the years the company had completed work for him immediately. The artwork was appraised at $$90,000.$ Markus also received a vacant building as a donation from the municipality, who no longer wanted to be responsible for operating costs. The building has a $20-$year estimated remaining useful life $($$$38,000$ residual value$),$ which was recognized in the donation agreement. Transfer costs of $$37,500$ were paid by the company. The building originally cost $$1,450,000,10$ years earlier. The building was recently appraised at $$782,500$ market value by the municipality$$s tax assessor. Anticipating occupancy within the next $10$ days, the company spent $$275,000$ for repairs and internal rearrangements, and is expected to have value for $8$ years. There are no unresolved contingencies about the building and Markus$$s permanent occupancy.

Required:

$1.$ Give all entries for Markus related to $($a$)$ the donations, $($b$)$ the renovation, and $($c$)$ any depreciation at the end of the first year of occupancy, assuming that Markus records donations at fair value and uses straight$-$line depreciation. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$2.$ What would appear on the SCF in relation to the transactions recorded in requirement $1?($Cash outflows and deductible values should be indicated by minus sign.$)$

$3.$ This part of the question is not part of your Connect assignment.

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