On December 1, 2013, XYZ bought land, buildings and equipment in a basket purchase for $740,000 plus $10,000 in legal fees and $15,000 land transfer tax (assume that the land transfer tax applies only to the land). 

The purchase was made with $250,000 in cash and the balance was paid with a mortgage. The real estate agent stated that individually, each of these items should cost $300,000 for the land, $750,000 for the building and $150,000 for the equipment.

Record the following Transactions

a) Record the purchase on December 1, 2013

b) Assume that on December 1, 2013, XYZ also bought a truck for $30,000 cash. The truck is expected to last 8 years and have a salvage value of $4000.

i) Record the amortization on December 31, 2013 assuming that XYZ uses the diminishing balance method

ii) Record the amortization for the full year of 2014 on Dec 31 2014

iii) Assume that instead of diminishing balance method, XYZ uses straight-line method amortization. 

Record the amortization for the full year for 2014 on Dec 31, 2014

iv) On Dec 31, 2014, XYZ sold the truck for $25,000. 

Assuming that straight-line amortization has been used, record the sale of the truck