Allocation of Package Purchase Price and Depreciation Methods

To expand its business, Small Company paid $854,000 for most of the property, plant, and equipment of a small trucking company that was going out of business. Before agreeing to the price, Small hired a consultant for $6,000 to appraise the assets. The appraised values were as follows:

Property	Assessed Value
Land	$135,000
Building	495,000
Trucks	162,000
Equipment	108,000
Total	$900,000

Small issued two checks totaling $860,000 to acquire the assets and pay the consultant on July 1. Small 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	Salvage Value
Building	20 years	$42,000
Trucks	4 years	15,000
Equipment	7 years	10,000

a. Calculate the amounts allocated to the various types of plant assets acquired on July 1.

Asset	Total
Land	$Answer
Building	Answer
Trucks	Answer
Equipment	Answer

b. Prepare the July 1 journal entries to record the purchase of the assets and the payment to the consultant.

General Journal
Date	Description	Debit	Credit
Jul.1	Land	Answer	Answer
	Building	Answer	Answer
	Trucks	Answer	Answer
	Equipment	Answer	Answer
	Cash	Answer	Answer
	To record purchase of plant assets and payment to consultant.

c. Prepare the December 31 journal entries to record depreciation expense for the year on the building, trucks, and equipment. (Round to the nearest dollar.)

						General Journal
			Date	Description	Debit	Credit
			Dec. 31	AnswerAccumulated Depreciation - BuildingAccumulated Depreciation - EquipmentAccumulated Depreciation - TrucksBuildingDepreciation Expense - BuildingDepreciation Expense - EquipmentDepreciation Expense - TrucksEquipmentLandTrucks	Answer	Answer
				AnswerAccumulated Depreciation - BuildingAccumulated Depreciation - EquipmentAccumulated Depreciation - TrucksBuildingDepreciation Expense - BuildingDepreciation Expense - EquipmentDepreciation Expense - TrucksEquipmentLandTrucks	Answer	Answer
				To record depreciation on building.
			Dec. 31	AnswerAccumulated Depreciation - BuildingAccumulated Depreciation - EquipmentAccumulated Depreciation - TrucksBuildingDepreciation Expense - BuildingDepreciation Expense - EquipmentDepreciation Expense - TrucksEquipmentLandTrucks	Answer	Answer
				AnswerAccumulated Depreciation - BuildingAccumulated Depreciation - EquipmentAccumulated Depreciation - TrucksBuildingDepreciation Expense - BuildingDepreciation Expense - EquipmentDepreciation Expense - TrucksEquipmentLandTrucks	Answer	Answer
				To record depreciation on trucks.
			Dec. 31	AnswerAccumulated Depreciation - BuildingAccumulated Depreciation - EquipmentAccumulated Depreciation - TrucksBuildingDepreciation Expense - BuildingDepreciation Expense - EquipmentDepreciation Expense - TrucksEquipmentLandTrucks	Answer	Answer
		Answer		AnswerAccumulated Depreciation - BuildingAccumulated Depreciation - EquipmentAccumulated Depreciation - TrucksBuildingDepreciation Expense - BuildingDepreciation Expense - EquipmentDepreciation Expense - TrucksEquipmentLandTrucks	Answer	Answer
				To record depreciation on equipment.

Please show the steps. Thank you!!!