a. The Hope Company purchased a building for $500,000. In addition, the following costs were incurred: at the purchase Broker commission Transfer taxes $25,000 10,000 Closing costs 20,000 Legal fees 5,000 Past real estates owed by seller 6,000 Before the building was open, another $100,000 of renovation costs were incurred to get the building ready for the company's use. After the building was open the following costs were incurred: Current real estate taxes Minor repairs Instructions; 8,000 1,000 Calculate the amount that should be debited to the building account at acquisition. b. 1. On January 1, year 1, the Acme Company purchased a machine for $85,000. The useful life was 5 years or 320,000 units and the salvage value was $5,000. The expected unit output per year is as follows: 1. 60,000 2. 100,000 3. 40,000 4. 90,000 5. 30,000 b. 1. On January 1, year 1, the Acme Company purchased a machine for $85,000. The useful life was 5 years or 320,000 units and the salvage value was $5,000. The expected unit output per year is as follows: 1. 60,000 2. 100,000 3. 40,000 4. 90,000 5. 30,000 Instructions; On the worksheet provided, compute the depreciation expense per year under straight-line. double declining balance and unit of activity methods 2. Based on your answer above, what is the book value of the asset after year 3 under the straight-line method 2