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Sandhill Farms purchased real estate for $1,150,000, Which included $6,300 in legal fees. It paid $265,000 cash and incurred a mortgage payable for the balance.
Sandhill Farms purchased real estate for $1,150,000, Which included $6,300 in legal fees. It paid $265,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $480,960, a building appraised at $734,800, and fences and other land improvements apprabed at $120,240. The building has an estimated useful life of 60 years and a $46,000 residual value, Land improvements have an estimated 15 -yenr useful life and no residual value. (a) Calculate the cost that should be allocated to each asset purchased. Land Improvements $ On June 9,2023, Oriole Company purchased manufacturing equipment at a cost of $366,600. Oriole estimated that the equipment will produce 640,000 units over its 5 -year usefur life, and have a residual value of $14,600. The company has a December 31 fiscal year end and has a policy of recording a half year's depreciation in the year of acquisition. (a) Calculate depreciation under the straight-line method for 2023 and 2024
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