On July 14, 2013, Tulsa Company pays $600,000 to acquire a fully equipped factory. The purchase * involves the following assets and information

Required 1. Allocate the total $600,000 purchase cost among the separate assets.
2. Compute the 2013 (six months) and 2014 depreciation expense for each asset, and compute the com¬ pany’s total depreciation expense for both years.
3. On the last day of calendar year 2015, Tulsa discarded machinery that had been on its books for five years. The machinery’s original cost was $12,000 (estimated life of five years) and its salvage value was $2,000. No depreciation had been recorded for the fifth year when the disposal occurred. Journal¬ ize the fifth year of depreciation (straight-line method) and the asset’s disposal.
4. At the beginning of year 2015, Tulsa purchased a patent for $100,000 cash. The company estimated the patent’s useful life to be 10 years. Journalize the patent acquisition and its amortization for the year 2015.
5. Late in the year 2015, Tulsa acquired an ore deposit for $600,000 cash. It added roads and built mine shafts for an additional cost of $80,000. Salvage value of the mine is estimated to be $20,000. The company estimated 330,000 tons of available ore. In year 2015, Tulsa mined and sold 10,000 tons of ore. Journalize the mine’s acquisition and its first year’s depletion.
6. On the first day of 2015, Tulsa exchanged the machinery that was acquired on July 14, 2013, along with $5,000 cash for machinery with a $210,000 market value. Journalize the exchange of these assets assum¬ ing the exchange lacked commercial substance. (Refer to background information in parts 1 and 2.)

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Appraised Salvage Useful Asset Value Value Life Depreciation Method Land $160,000 Not depreciated Land improvements 80,000 $ 0 10 years Straight-line Building 320,000 100,000 10 years Machinery 240,000 20,000 10,000 units Double-declining-balance Units-of-production* Total.. $800,000 * The machinery is used to produce 700 units in 2013 and 1,800 units in 2014.