E Businesscourse Return to course My Subscriptions Stephanie Steenwyk Allocation of Package Purchase price and Depreciation Methods To expand its business, Small Company paid $854,000 for most of the property, plant, and equipment of a small trucking company that was going out of business. Before agreeing to the price, Small hired a consultant for 56,000 to appraise the assets. The appraised values were as follows: Assessed Property Value Land $135.000 Building 495.000 Trucks 162000 Equipment 108000 Total $900.000 Small issued two checks totaling 5860,000 to acquire the assets and pay the consultant on July 1, Small depreciated the assets using the straight-line method on the building and on the equipment, and the double-declining balance method on the trucks. Estimated useful lives and salvage values were as follows: Salvage Useful Life Value Building 20 years 542.000 Trucks 4 years 15.000 Equipment 7 years 10000 a. Calculate the amounts allocated to the various types of plant assets acquired on July 1 Asset Total Land 5 Building Trucks Equipment b. Prepare the July 1 journal entries to record the purchase of the assets and the payment to the consultant. Combine both cash disbursements into one journal entry