6. Watson Company purchased assets of Holmes Ltd. at auction for $1,300,000. An independent appraisal of the fair value of the assets acquired is listed below: Land Building Equipment Inventories $214,500 357,500 572,000 286,000 Required Prepare the journal entry to record the purchase of the assets. Cutter Enterprises purchased equipment for $72,000 on January 1,2018. The equipment is expected to have a five-year life and a residual value of $6,000. 7. Using the straight-line method, the book value at December 31, 2018, would be: a) $57,600. b) $51,600. c) $58,800. d) $52,800. On June 30, 2018, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units-of-production method. During the six months of 2018, 24,000 units of product were produced. At the beginning of 2019, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2019,70,000 units were produced. 8. Prego would report depreciation in 2018 of a) $36,000. b) $43,900. c) $18,000. d) $21,950