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Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $4.500,000 Assets acquired:

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Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $4.500,000 Assets acquired: Land 3800,000 Building $700,000 Machinery $800,000 Patents $700,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value 370,000 Estimated useful life in years The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in Actual production in units was as 2019 20,000 2020 20,000 2021 20,000 The patents are amortized on a straight-line basis. They have no salvage value. Estimated useful life of patents in 40 On December 31, 2020, the value of the patents was estimated to be $100,000 Where applicable, the company uses the # year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31. The machinery was traded on December 2, 2021 for new machinery. Other information is: Fair value of old machinery $400,000 Trade-in allowance $800,000 List price for new machinery $840,000 Estimated useful life of new machinery in TO Estimated salvage value of new 38,400 The new machinery is depreciated using the straight-line method and On August 14, 2023, an addition was made. This amount was material. Other relevant information is as follows: Amount of addition, paid in cash $400,000 Number of years of useful life from 2023 (original machinery and addition): 20 Salvage value, percentage of addition 10% Required: Prepare journal entries to record: 1 The purchase of the assets of Coffee. 2 Depreciation and amortization expense on the purchased assets for 2019. 3 The decline (if any) in value of the patents at December 31 4 The trade-in of the old machinery and purchase of the new 5 Depreciation on the new machinery for 2021. 6 Cost of the addition to the machinery on August 14, 2023. 7 Depreciation on the new machinery for 2023

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