CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 8 Partially correct Mark 17.00 out of 32.00 P Flag question Allocation of Package Purchase Price and Depreciation Methods In an expansion move, Beam Company paid $2,190,000 for most of the property, plant, and equipment of a small manufacturing firm that was going out of business. Before agreeing to the price, Beam hired a consultant for $25,000 to appraise the assets. The appraised values were as follows: $384,000 912,000 Equipment 960,000 144,000 $2,400,000 Land Building Trucks Beam issued two checks totaling $2,215,000 to acquire the assets and pay the consultant on April 1. Beam depreciated the assets using the straight-line method for the building and equipment, and the double-declining balance method for the trucks. Estimated useful lives and salvage values were as follows: Salvage Useful Life Value Building Equipment Trucks 15 years $86,000 9 years 70,000 5 years 13,000 a. Calculate the amounts allocated to the various types of plant assets acquired on April 1 . Total Asset $364,000 X Land Building 874,000X 920,000X Equipment 138,000X Trucks b. Prepare the April 1 journal entries to record the purchase of the assets and the payment to the consultant. General Journal Debit Credit Date Description 368,000 Apr.1 Land Building Equipment Trucks 0 Cash To record purchase of plant assets and payment to C. Prepare the December 31 journal entries to record depreciation expense for the year on the building, trucks, and equipment. (Round to the nearest dollar.) General Journal Debit Credit Date Description 52,533 Dec. 31 Depreciation Expense Building Accumulated Depreciation - Building To record depreciation on building Dec. 31 Depreciation Expense - Equipment Accumulated Depreciation - Equipment To record depreciation on equipment. Dec. 31 Depreciation Expense - Trucks Accumulated Depreciation - Trucks To record depreciation on trucks Check