Akira Ltd., purchased a building near Montreal and the land on which was built for $800,000. The previous owner paid $1,200,000 for the land and building Arecent independent could the und and building at a market value of $1.000.000, of which $400.000 was able to the land. Akira paid $250,000 is cash and signed a note to $600.000, payable in one year. Akuras paid $50,000 in legal foes and $10,000 for unpaid property taxes. Anna spent 100.000 on renovations and tertion to the building so it would be suitable for the company's purposes. The building is estimated to have a We of 20 years and a result of $80.000 Akira also purchased machinery with a list price of $320,000, but the company received a 5% cash discount for prompt payment. Akita paid $27.000 torportation of the machinery and $24,000 fot institution costs. The machinery has no residual voice and is expected to produce 100.000 units of product over its economie e 30,000 units were produced wingers yarn 48.000 unts were mandatured in the second year in addition, Akira purchased five identicat delivery trucks for a tot of $300,000. The trucks have an estimated to or ve years and a rendu aue of 58.000 hing and trance et le te trucks amounted to $5,000, which the company paid in cash Akira uses the following methods to depreciate these assets: Building: Straight line Machinery Units of production Trucks: Dechining balance using a rate of 30% of the carrying amount (net book value) we to produce 700,000 units of product over its economic useful le 30.000 units were produced during the first year and 48, wyment Akira paid $22.000 for transportation of the machinery und year addition, Akira purchased five identical delivery trucks for a total of $300,000. The trucks have an estimated useful life of five years and a sous voue of 50,000 each. Licensing ucks amounted to $5,000, which the company paid in cash kira uses the following methods to depreciate these assets: Building: Straight-line Machinery: Units of production Trucks: Declining balance, using a rate of 30% of the carrying amount (net book value) EQUIRED 1. Prepare journal entries to record the purchase of the land, building, machinery and trucks in separate asset accounts. (1 marks) 2. Prepare the journal entry to record the depreciation expense on the building for the first year of operations (3 marks) 3. Calculate the depreciation expense on the machinery for the second year of operations. (1.6 marks) 4. Calculate the depreciation expense on the five trucks for the second year of operations (2 marks) 5. Akira sold one of the five trucks at the beginning of the third year for $35,000 in cash. Prepare the journal entry to record the sale of the truck (3.5 marks) 6. What are intangible assets? Give two examples. How should those assets be measured and reported in the financial statements