1- On January 1, Year 1, Friedman Company purchased a truck that cost $32,000. The truck had an expected useful life of 5 years and a $7,000 salvage value. The company uses the double-declining balance method. The book value of the truck at the end of Year 1 is: (Do not round intermediate calculations.)

2- Pioneer Corporation purchased for $750,000 land and a building that will be used in farming operations. The appraised value of the land is $400,000 and the appraised value of the building is $600,000.

Required: What amount of the purchase price will be allocated to the land and what amount will be allocated to the building, respectively?

3-

Max Company's first year in operation was Year 1. The following inventory purchase information comes from Max's accounting records for the year.

19January	120 units @ $280
20April	240 units @ $304
15October	90 units @ $320

In December Year 1, Max sold 350 units for $480 each. Operating expenses for the year were $30,000.

Required:

Calculate the profit under LIFO (NOTE: you must calculate the cost of goods sold under LIFO first)