Owl enterprises Purchased a company that puchases and sells wagons for recreational and commercial use for $1.000.000 An appraisal firm valued the assets purchased at the following values Land $100,000 Building 20 $600,000 with a useful life of 20 years Van $ 20,000 with a useful life of 4 years or 40,000 miles Salvage Value $100,000 Other Equipment $ 80,000 with a useful life of 8 years Salvage Value $ 2.000 Current Assets $ 100,000 Salvage Value $4.000 The remaining amount was paid for Goodwill which should be amortized over 40 years. Use the following method to Deprecate or Amortise the long term assets Land Building Using Stright Line Depreciation Van Using the Units of Production method Other Equipment Using OB Accelerated Depreciation Current assets Goodwill Calculate the amount of amortisation or depreciation for year 2 Total Purchase Price Van Year Building Asset cost Asset cost Year 1 Year 2 Year 3 Salvage voue Salvage vlaue Depreciable Amount Depreciable Amount Useful Life/Deprex Useful Life/Deprex (units of Prod Units Used 15.000 Depreciation Expense Depreciation Expense Accumulated Depreciation Accurated Depreciation Book Value Book Value Remaining Depreciable Amour Remaining Depreciable Amount Year 2 Year 10.000 12.000 Year Yeart Year Year 2 Year! Other Equipment Asset cost Salvage vloue Depreciable Amount Useful Life/Depre % Depreciation Expense Accumulated Depreciation Book Value Remaining Depreciable Amount Goodwill Asset cost Salvope wowe Amortisable Amount Useful Life/Amort Amortisation Expense Accumulated Appreciation Book Value Remaining Amortable Amount