1.Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:

PP&E Element	Amount
Land	$15,000
Building	35,000
Equipment	40,000

Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.)

2.Annapolis Company was recently sold for $500,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:

Item	Amount
Accounts Receivable assumed by buyer	$108,000
Inventory	$280,000
Property, Plant & Equipment (net)	$520,000
Notes Payable assumed by buyer	$665,000

Using this information, how much should be recorded as Goodwill for this transaction?

Your Answer:

3.On January 2, 2019, Adelphi Company purchased a patent for $150,000 plus $5,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 6 years after which time it will be worthless. How much is the annual amortization expense for 2019? Round to nearest whole dollar.

4.Frederick Mining Company owns a large parcel of land which costs $1,100,000. It is estimated to contain 1,700,000 tons of recoverable ore. It is estimated that the recovery of the ore will take 10 years and that after the ore is fully depleted the land will be sold for a market value of $200,000. In 2018, Frederick extracted and sold 105,000 tons of ore. What is the amount of depletion that should be recorded? Round total to the nearest whole dollar.