Allocation of Package Purchase Price and Depreciation Methods To expand its business, Small Company paid $760,000 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 $5,000 to appraise the assets. The appraised values were as follows: Assessed Property Value Land $120,000 Building 440,000 Trucks 144,000 Equipment 96,000 Total $800,000 Small issued two checks totaling $765,000 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: Building Trucks Equipment Salvage Useful Life Value 20 years $42,000 4 years 15,000 10,000 8 years a. Calculate the amounts allocated to the various types of plant assets acquired on July 1,

Allocation of Package Purchase Price and Depreciation Methods To expand its business, Small Company paid $750.000 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 $5,000 to appraise the assets. The appraised values were as follows Assessed Property Value Land $130.000 Building 440,000 Trucks Equipment 144000 96,000) $800.000 Small issued two checks totaling $765.000 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-dedining balance method on the trucks. Estimated useful lives and salvage values were as follows Salvage Useful Life Value Building 20 years $42,000 4 years 15.000 Trucks Equipment Byears 10.000 a Calculate the amounts allocated to the various types of plant assets acquired on July 1,