To expand its business, Renee Company paid \(\$ 760,000\) for most of the property, plant, and equipment of a small trucking company that was going out of business. Before agreeing to the price, Small hired a consultant for \(\$ 10,000\) to appraise the assets. The appraised values were as follows:

Small issued two checks totaling \(\$ 770,000\) to acquire the assets and pay the consultant on July 1. Renee depreciated the assets using the straight-line method on the building and on the equipment, and the doubledeclining balance method on the trucks. Estimated useful lives and salvage values were as follows:

Required

a. Calculate the amounts allocated to the various types of plant assets acquired on July 1.

b. Prepare the July 1 journal entries to record the purchase of the assets and the payment to the consultant.

c. Prepare the December 31 journal entries to record depreciation expense for the year on the building, trucks, and equipment.

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Land. Building. Trucks.. Equipment Total $120,000 440,000 144,000 96,000 $800,000