On February 12, 2019, the Wombat Company made a lump sum purchase of a factory complete with machinery and equipment for $1,805,000. The fair value of the various types of assets along with estimated useful lives and residual values are as follows: Estimated Useful Life in Years N/A 25 Asset Land Building Machinery Equipment Total Estimated Residual Value N/A 125,000 10% of allocated cost $15,000 Fair Value $ 200,000 1,020,000 483,000 197,000 $1,900,000 7 10 b) On May 29, 2020, machinery included in the February 12, 2019 puchase was sold for $380,000 cash. c) Wombat uses the straight-line depreciation method for buildings, units of production method for machinery and the double declining balance method for equipment. Partial-year depreciation is calculated based on the number of months an asset is in service (depreciation starts in the month following purchase but the asset incurs a full month of depreciation in the month of disposal). d) Machinery is expected to last 2,175,000 hours; it was used for 310,000 hours in 2019, in 2020 125,000 hours were used by May 29, Required: (round answers to the nearest 2 decimals) 1. Allocate the purchase price to the assets received in the lump sum purchase (no journal entry required for -1). 2. Compute depreciation expense on the building, machinery, and equipment for 2019. Prepare journal entries recording the depreciation of these assets (do each type of asset separate). 3. Prepare the journal entries to record the depreciation on the machinery prior to the sale on May 29, 2020, and the journal entries for the sale of machinery. What is the gain / (loss) recognized on the machinery sale? 4. Compute the annual depreciation ex pense on the building and equipment for 2020 (No journal entry required for #4)