P10-8 LO2 LO 3 Basket Purchase and Partial-Year Depreciation On April 1, 2018, Rosenberg Company purchased for $200,000 a tract of land on which was located fully equipped factory. The following information was compiled regarding this purchase: Market Value Seller's Carrying Amount Land Building Equipment Totals $ 75,000 100,000 50,000 $225,000 $ 30,000 75,000 60,000 $165.000 Required: 1. Prepare the journal entry to record the purchase of these assets. 2. Assume that the building is depreciated on a straight-line basis over a remaining life of 20 years and the equipment is depreciated on a straight-line basis over five years. Neither the building nor the equipment is expected to have any salvage value. Compute the depreciation expense for 2018 assuming the assets were placed in service immediately upon acquisition. Changes in Depreciation Estimates and Canitalitation P10-9