Question
Part A) Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element
Part A)
Bowie 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
$15,000
Building
25,000
Equipment
40,000
Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.)
Part B)
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $23,000 for the truck. The truck is expected to have a $3,000 residual value and a 5-year life.Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much isthe 2019 depreciation expense?(Enter only whole dollar values.)Hint: what is the year 2 depreciation amount?
Part C)
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $25,000 for the truck. The truck is expected to have a $2,500 residual value and a 7-year life.Cambridge has a December 31 fiscal year end. Using the straight-line method, how much isthe 2019 depreciation expense?(Enter only whole dollar values.)
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