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Akira Lid purchased a building near Montres and the land on which it was bult for 5050,000. The previous owner paid $1.200,000 for the land

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Akira Lid purchased a building near Montres and the land on which it was bult for 5050,000. The previous owner paid $1.200,000 for the land and building. A recent independent appraisal valued the land and building at a market value of $1,000,000, of which $400,000 was atributed to the land Akara paid $250,000 cash and signed a note for 3600,000, payable in one year Akira stopala $50,000 in legat toes and $10.000 for unpaid property taxes Akira spent $100,000 on renovations and alterations to the building sou would be suitable for the company's purposes. The building is estimated to have a une e of 20 years and residual value of $60,000 Akira also purchased machinery with a stron of 320.000, but the company received a 8% cash discount for prompt payment. Allra paid 22,000 for transportation of the machinery and $24,000 for installation couts. The machinery has no residus value and is expected to produce 700.000 units of product over its economice. 30,000 units were produced during the first year and 40,000 units were manufactured in the second year In addition, Akin purchased five identical devery trucks for a total of $300,000. The trucks have an estimated file of five years and a resid value of $8,000 each. Licensing and insurance fees for the five trucks amoured to $5,000, which the company paid in cash Akira uses the following methods to depreciate these Budg: Straight Machinery Units of production Trucks: Declining balance using a rate of 30% of the carrying amount to book aue) REQUIRED 1. Prepare journal enties to record the purchase of the land, buong machinery and in separate count) 2. Prepare the journey to record the depreciation expo on the ling for the first year of operosa) 3. Calculate the depreciation expense on the machinery for the second year of operation 5 mans) 4. Calote the depreciation expense on the lives for the second year of operation 2 Alors sold one of the live trudat being of the year for 595,000 in cath Prepare the journal entry to record the sale of them) Ware intangit? Give two ares. How should then be measured and reported in the contents

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