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On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,020,000 to

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On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,020,000 to the various types of assets along with estimated useful lives and residual values are as follows: Estimated Residual Estimated Useful Asset Value Life (in years) Land $ 110, eee N/A N/A Building 520,000 none 25 Equipment 220, eee 12% of cost 10 Vehicles 170,000 $14,000 10 Total $1,eze, I Cost On June 29, 2022, equipment included in the March 31, 2021, purchase that cost $102,000 was sold for $82,000 Herzog uses the straight-line depreciation method for building and equipment and the double-declining balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2021. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022, and the sale of equipment. 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2022. Required 1 Required 2 Required 3 Compute depreciation expense on the building, Depreciation Expense Building Equipment Vehicles Re Journal entry worksheet Record the depreciation on machinery sold. Note: Enter debits before credits General Journal Debit Credit Date June 29, 2022 Record entry Clear entry View general Journal Saved WWW Journal entry worksheet Record the sale of machinery. Note: Enter debits before credits. General Journal Debit Credit Date June 29, 2022 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Compute depreciation expense on the buildi calculations.) Dok Depreciation Expense nt ences Building Equipment Vehicles

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