Exercise 7-3A Allocate costs in a basket purchase (LO7-1) Red Rock Bakery purchases land, building, and equipment for a single purchase price of $320,000. However, the estimated fair values of the land, building, and equipment are $147,000, $252,000, and $21,000, respectively, for a total estimated fair value of $420,000. points Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. eBook Hint Print Estimated Fair Value Allocation Percentage Amount of Basket Purchase Recorded Amount References Land Building Equipment Total 147,000 252,000 21,000 420,000 35 % 60% 50% $ Part 1 of 2 Required information Exercise 7-16A Record amortization expense (LO7-5) (The following information applies to the questions displayed below.) 0.5 points On January 1, 2021, Weaver Corporation purchased a patent for $255,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2023, the company incurred legal fees of $75,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. eBook Hint Exercise 7-16A Part 1 Print References Required: 1. Record the purchase in 2021; amortization in 2021; amortization in 2022; legal fees in 2023; and amortization in 2023. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet General Journal Credit No 1 Date January 01, 2021 Patents Cash Debit 255,000 255,000 2 December 31, 2021 Amortization Expense Patents Part 2 of 2 Required information Exercise 7-16A Record amortization expense (L07-5) [The following information applies to the questions displayed below.] 0.5 points On January 1, 2021, Weaver Corporation purchased a patent for $255,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2023, the company incurred legal fees of $75,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Skipped eBook Exercise 7-16A Part 2 Hint Print 2. What is the balance in the Patent account at the end of 2023? References Balance in the Patents account 12 Part 1 of 2 Required information Exercise 7-17A Record the sale of equipment (LO7-6) (The following information applies to the questions displayed below.) 0.5 points Abbott Landscaping purchased a tractor at a cost of $35,000 and sold it three years later for $17,500. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,000 residual value. Tractors are included in the Equipment account. eBook Hint Exercise 7-17A Part 1 Print References Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction Credit General Journal Cash Accumulated Depreciation Debit 17,500 13 Required information Exercise 7-17A Record the sale of equipment (LO7-6) [The following information applies to the questions displayed below.) Part 2 of 2 Abbott Landscaping purchased a tractor at a cost of $35,000 and sold it three years later for $17,500. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,000 residual value. Tractors are included in the Equipment account. 0.5 points Skipped Exercise 7-17A Part 2 eBook 2. Assume the tractor was sold for $10,900 instead of $17,500. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Hint Print View transaction list References Journal entry worksheet Record the sale of equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit