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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 $3.500.000 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 $3.500.000 Assets acquired: Land S600.000 Building 5500.000 Machinery Ss00.000 Patents 3600,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value 550.000 Estimated useful life in years The machinery is depreciated using the units-of-production method Other information is: Salvage value, percentage of cost 1096 Estimated total production output in 200.000 Actual production in units was as 2019 40.000 2020 GURUU 2021 20,000 30 The patents are amortized on a straight-line basis. They have no salvage va Estimated useful life of patents in 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 $240.000 Trade-in allowance S288,000 List price for new machinery $403.200 Estimated useful life of new machinery in 20 Estimated salvage value of new $8.064 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 $100,000 Number of years of useful life from 2023 (original machinery and addition): Salvage value, percentage of addition 1096 30 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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