QUESTION 3 (16 marks) On October 1, 2013, Acme Company acquired land, land improvements, a building and a machine at a cost of $1,000,000. The appraised value of the assets at the purchase date appears below. Land Land improvements Building Machine Total $360,000 96,000 600,000 144,000 $1.200.000 The building is estimated to have a 20-year life, a $60,000 residual value, and will be depreciated using the straight-line method. The machine is estimated to have a 5-year life with no residual value, and will be depreciated using the double-declining method. The land improvements are estimated to have a 10-year life, with no residual value and will be depreciated using the double-declining-balance method. Required: 1. Prepare a schedule to allocate the lump-sum purchase price to the separate assets. (6 marks) Show all calculations. 2. Record the purchase of the assets. (2 marks) Show all calculations. Date Account Titles Debit Credit 3. Record depreciation expense for land improvements, building and machine for 2013 and 2014. Acme has a December 31 year-end. (8 marks) Show all calculations. Date Account Titles Debit Credit