Part 1)

Alpha Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:

PP&E Element

Amount

Land

$10,000

Building

20,000

Equipment

30,000

Alpha paid $45,000 cash for the lump sum purchase. What value should be allocated to the following? (Enter only whole dollar values.)

1. Land

2. Building

3. Equipment

Part 2)

On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eight years and the total units of output to be 200,000.The estimated residual value is $8,000. Using the straight-line method, how much is: (Enter only whole dollar values.)

1. the 2017 depreciation expense
2. the accumulated depreciation after the fiscal year 2017 adjusting entry
3. the book value of the machine after the fiscal year 2017 adjusting entry

Part 3)

Bravo Company purchased equipment on October 1, 2016. Bravo paid $60,000 for equipment and paid an additional $500 for shipping and $200 to place the equipment in service. The equipment is expected to have a $6,000 residual value and a 8-year life. Bravo has a December 31 fiscal year end. Using the double-declining balance method, how much is: (Enter only whole dollar values.)

1. the 2018 depreciation expense
2. the accumulated depreciation after the fiscal year 2018 adjusting entry
3. the book value of the machine after the fiscal year 2018 adjusting entry