Crow Co. purchased some of the machinery of Hare Inc., a bankrupt competitor, at a liquidation sale for a total cost of $136,200. Crow?s cost of moving and installing the machinery totaled $12,300. The following data are available:

Required:a. Calculate the amount that should be recorded by Crow Co. as the cost of each piece of equipment.

b. Which of the following alternatives should be used as the depreciable life for Crow Co.?s depreciation calculation? Explain your answer.

The remaining useful life to Hare Inc.

The life of a new machine.

The useful life of the asset to Crow Co.

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List Price of Same Item If New Appraiser's Estimate of Fair Value Hare's Net Book Value on the Date of Sale Item Punch press $85,400 S131,000 $108,000 45,000 27,000 Lathe 58,200 67,000 Welder 42,000 26,400