HW Problem 8.2 - On April 1st, Tori Company made a group purchase from a company going out of business. It paid $400,000 for the following items appraised at the following values: Building Land Land Improvements Equipment Total 260,000 120,000 40,000 80,000 $500,000 a. Record the journal entry for the purchase on April 1st. Hint: The goodwill account is not used for this problem, and no gain/loss is recognized at the purchase of an asset (cost principle). b. Calculate the amount of depreciation on the building for the first and second years. Assume the double-declining balance method, a cost of $208,000, a 40-year life, and salvage value of $20,000. (Show your calculations.) c. Calculate the amount of depreciation on the land improvements for the first and second years assuming a 20-year life, the straight-line method, original cost of $32,000, and a salvage value of $4,000. (Show your calculations.) d. Calculate the amount of depreciation on the equipment for the first and second years. Assume the units of production method, a $64,000 cost, a 32,000 machine hour life, and a salvage value of $8,000. The equipment was used 5,000 machine hours in the first year and 10,000 machine hours in the second year. (Show your calculations.)

HW Problem 8.2 - On April 1st. Tori Company made a group purchase from a company going out of business. It paid $400,000 for the following items appraised at the following values: a. Record the journal entry for the purchase on April 1st. Hint: The goodwill account is not used for this problem, and no gain/loss is recognized at the purchase of an asset (cost principle). b. Calculate the amount of depreciation on the building for the first and second years. Assume the double-declining balance method, a cost of $208,000, a 40-year life, and salvage value of $20,000. (Show your calculations.) c. Calculate the amount of depreciation on the land improvements for the first and second years assuming a 20 -year life, the straight-line method, original cost of $32,000, and a salvage value of $4,000. (Show your calculations.) d. Calculate the amount of depreciation on the equipment for the first and second years. Assume the units of production method, a $64,000 cost, a 32,000 machine hour life, and a salvage value of $8,000. The equipment was used 5,000 machine hours in the first year and 10,000 machine hours in the second year. (Show your calculations.) HW Problem 8.2 - On April 1st, Tori Company made a group purchase from a company going out of business. It paid $400,000 for the following items appraised at the following values: a. Record the journal entry for the purchase on April 1st. Hint: The goodwill account is not used for this problem, and no gain/loss is recognized at the purchase of an asset (cost principle). b. Calculate the amount of depreciation on the building for the first and second years. Assume the double-declining balance method, a cost of $208,000, a 40-year life, and salvage value of $20,000. (Show your calculations.) c. Calculate the amount of depreciation on the land improvements for the first and second years assuming a 20 -year life, the straight-line method, original cost of $32,000, and a salvage value of $4,000. (Show your calculations.) d. Calculate the amount of depreciation on the equipment for the first and second years. Assume the units of production method, a $64,000 cost, a 32,000 machine hour life, and a salvage value of $8,000. The equipment was used 5,000 machine hours in the first year and 10,000 machine hours in the second year. (Show your calculations.)