In an expansion move, Beam Company paid $2,680,000 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 $20,000 to appraise the assets. The appraised values were as follows: Land $448,000 Building 1,064,000 Equipment 1,120,000 Trucks 168,000 Total $2,800,000 Beam issued two checks totaling $2,700,000 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: Useful Life Salvage Value Building 15 years $86,000 Equipment 9 years 70,000 Trucks 5 years 13,000

Allocation of Package Purchase Price and Depreciation Methods In an expansion move, Beam Company paid $2,680,000 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 $20,000 to appraise the assets. The appraised values were as follows: Beam issued two checks totaling $2,700,000 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: a. Calculate the amounts allocated to the various types of plant assets acquired on April 1. a. Calculate the amounts allocated to the various types of plant assets acquired on April 1. Allocation of Package Purchase Price and Depreciation Methods In an expansion move, Beam Company paid $2,680,000 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 $20,000 to appraise the assets. The appraised values were as follows: Beam issued two checks totaling $2,700,000 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: a. Calculate the amounts allocated to the various types of plant assets acquired on April 1. a. Calculate the amounts allocated to the various types of plant assets acquired on April 1