Question
Alpha Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land
Alpha Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:
PP&E Element
Amount
Land
$10,000
Building 20,000
Equipment 30,000
Alpha paid $45,000 cash for the lump sum purchase. What value should be allocated to the following? (Enter only whole dollar values.)
1. Land
2. Building
3. Equipment
Question 3(12 points)
Bravo Company purchased equipment on October 1, 2016. Bravo paid $60,000 for equipment and paid an additional $500 for shipping and $200 to place the equipment in service. The equipment is expected to have a $6,000 residual value and a 8-year life. Bravo has a December 31 fiscal year end. Using the double-declining balance method, how much is: (Enter only whole dollar values.)
- the 2018 depreciation expense
- the accumulate depreciation after the fiscal year 2018 adjusting entry
- the book value of the truck after the fiscal year 2018 adjusting entry
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