Lump-Sum Purchase To add to his growing chain of grocery stores, on January 1, 2016, Danny Marks bought a grocery store of a small competitor for $603,000. An appraiser, hired to assess the acquired assets' values, determined that the land, building, and equipment had market values of $218,460, $165,500, and $278,040, respectively. Required: 1. What is the acquisition cost of each asset? Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset Land: Building: Equipment: Acquisition Cost Prepare a journal entry to record the acquisition. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Date Description Jan. 1 Assets Journal Debit Credit Assets Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Net Expenses Income 2. Danny plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2016 on these newly acquired assets. You can assume zero residual value for all assets. Round your answers to the nearest whole dollar. If an amount is zero, enter "0". Land: Building: Equipment: 2016 Depreciation 3. How would the assets appear on the balance sheet as of December 31, 2016? Grocery Store Balance Sheet (Partial) December 31, 2016 Long-term assets: Total long-term assets 0000 0000