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need to check my work for this question(s) please help! 2A. Allocation of Package Purchase Price Tamarack Company purchased a plant from one of its
need to check my work for this question(s) please help!
2A. Allocation of Package Purchase Price Tamarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price included the land, a building, and factory machinery. Tamarack also paid $6,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following valuev for the items nurchased: Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building. and machinery accounts in Tamarack Company's records. 3A. Depreciation Methods A delivery truck costing $22,000 is expected to have a $2,000 salvage value at the end of its useful life of four years or 100,000 miles. Assume that the truck was purchased on January 2. Calculate the depreciation expense for the second year using each of the following depreciation methods: (a) straight-line, (b) double-declining balance, and (c) units-of-production. (Assume that the truck was driven 30,000 miles in the second year.) Step by Step Solution
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