1. A company purchased a tract of land, a small building, and some equipment for $500,000. The appraised value of the land was $325,000, the building $222,000, and the equipment $53,000. If the company paid 1500,000 Cash and takes out a mortgage for the rest of the amount record the journal entry for the purchase. Show your calculations.

Table 1

On May 16, 2020, Warcry Studios purchased a pre amplification system for $20,000. The system is expected to be used for 6 years, after which it can be sold for $2,000.

2. Refer to Table 1. Calculate the amortization and book value of the monitoring system using the straight line and the double declining balance method amortization for every year.

3. In 2020, a Company paid $ 1,250,000 for a machine that produces headphones with an estimated life of 4 years, 200,000 units and an estimated residual value of 50,000. On the first year it produced 80,000 units. On the 2^nd it produced 70,000 units. On the 3^rd it produced 30,000 units and on the 4^th it produced 20,000 units. Calculate the amortization for each year, using the units of production method.