3)

6)

Exercise 7-3 (Algo) Allocate costs in a basket purchase (LO7-1) Red River Bakery purchases land, bullding. and equipment for a single purchase price of $260.000. However, the estimated fair values of the land, building, and equipment are $126,000,$198,000, and $36,000, respectively, for a total estimated fair value of $360,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment. Required information Exercise 7-10 (Algo) Determine depreciation for the first year under three methods (LO7-4) [The following information applies to the questions displayed below.] On January 1, Buy More Groceties purchased store equipment for $16,000. Buy More estimates that at the end of its 10 . year service life, the equipment will be worth $1,000. During the 10-year period, the company expects to use the equipment for a total of 10,000 hours. Buy More used the equipment for 1.520 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-10 (Algo) Part 1 1. Straight-line