Coffee Shop You own a coffee shop down on Main Street and you have purchased a new coffee brewer on January 1, 2014. The brewer cost $10,000 and had an expected useful life of 5 years or 50,000 pots of coffee. The estimated salvage value/residual value of $1,000. The anticipated usage is: 2014 8,500 pots, 2015: 9,000 pots, 2016: 10,500 pots, 2017: 10,800 pots, and 2018: 11,200 pots. You need to decide which depreciation method you are going to use to allocate the cost of the food truck. Compute the straight-line depreciation, double-declining balance depreciation and units of production depreciation. SLD (Cost-SV)/ useful years Straight- Line De ion Schedule Book DDB-( 1/years) 2) BV Round to 2 decimal places if needed Double-Declining Balance D Schedule Depreciation Balance Accumulated Val UOP=( (cost-Svy total usage)"actual usage Round to 2 decimal places if needed Units of Production De iation Schedule Depreciation Balance Accumulated ost Book Val Part 2 Costs to include in Acquisition On June 30, 2014, Providence, Inc. purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below 00,00 chase Title insurance for land Commission fees to broker for c for land 3.50 3.00 8.500 2,00 4.00 6,000 9,00 720,00 3 on land ost of demoli old building on lot eeds from sale of salva taxes, July 1, 2014 December 31, 201 Engineering fees for Building plans and filling land for building site ost of ost of building construction 0 Sales tax paid on building construction materials 4,00 Required Determine the amounts that should be capitalized as the cost of the land and the new building. Highlight or circle the items you believe should be included in the capitalized cost Part 3- Non-monetary exchanges Patriots Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the operations of Hawks Company. The following information pertains to the exchange Patriots Hawks 31,000 30,00 20,00 5.500 17.50 2,00 cost) ccumulated 12.00 ation air value of equipment Cash a. Prepare the journal entries below to record the exchange on the books of both Companies. Assume the exchange has commercial b. Prepare the journal entries below to record the exchange on the books of both Companies. Assume the exchange lacks commercial substance