accounts of Norma Company P9-2A. Allocation of Package Purchase Price and Depreciation Methods To expand its business, Re Company paid $760,000 for most of the property, plant, and equipment of a small trucking com that was going out of business. Before agreeing to the price, Small hired a consultant for $10,000 appraise the assets. The appraised values were as follows: Land .............................................................. Building.................................................. Trucks............... Equipment ............. Total .............................. . . .. . . $120,000 440,000 144,000 96,000 $800,000 Small issued two checks totaling $770,000 to acquire the assets and pay the consultant on July 1. Renee depreciated the assets using the straight-line method on the building and on the equipment, and the double- declining balance method on the trucks. Estimated useful lives and salvage values were as follows: Useful Life Building.................................................... Trucks ........... Equipment ..... 20 years 4 years 8 years Salvage Value $42,000 15,000 10,000 Required a. Calculate the amounts allocated to the various types of plant assets acquired on July 1. b. Prepare the July 1 journal entries to record the purchase of the assets and the payment to the consultant. c. Prepare the December 31 journal entries to record depreciation expense for the year on the build- ing, trucks, and equipment