Sonata Manufacturing Corporation decided to expand its operations and open a new facility in Illinois. Rather than constructing a new plant, Sonata negotiated a contract to purchase an existing facility from a former competitor for a total cost of $5.000.000 The facility included the land building machinery and equipment, Inventory, and manufacturing supplies. The former competitor was closing its operations and decided to sell the facility at a reduced price, as reflected in the fair values of the individual assets acquired (Click the icon to view the fair values of the individual assets acquired) (Click the icon to view additional information) Read the requirements Requirement a. Determine the proper allocation of the purchase cost to each of the assets acquired. (Round interim percentages to the nearest percent X% and your final answers to the nearest whole collar) Allocation to Specific Asset Type Balance Sheet Accounts Building Land Machinery and Equipment Inventory Manufacturing Supplies Total Requirement b. Prepare the journal entries necessary to record the acquisition of the assets Assume that all expenditures were made in cash. Record debits first then credits Excode explanations from any journal entities Accounts Current Year Requirement c. Prepare the joumal entries necessary to record the depreciation of the building and the machinery and equipment, the sale of inventory and use of the manufacturing supplies Assume acquired assets on January Record debits then credits Exclude explanations from any joumal entries) Requirement c. Prepare the journal entries hoossary to record the depreciation of the building and the machinery and equipment, the sale of transry, and one of the manchoring sucoles Assame store 25es on Records then credits Exclude explanations trom any journal ertries Prepare the loomal entry to record the depreciation of the big hocounts Current Prepare the journal entry to record depreciation of the machinery and it Can Y Prepare the journey to use the sale of invertory Dumit on the cost of your solid Wood cont of gods sold in the Acants Cum yn Prepare the journal entry to record the sale of inventory Do not record the cost of goods sold. We will record the cost of goods sold in the next step Accounts Current Year & Prepare the joumal entry to record the cost of goods sold Accounts Current Year Prepare the journal entry to record the manufacturing supplies used. Accounts Current Year w facility in Illinois. Rather than constructing a new plant, Sonata negotiated a contract to purchase an exist anufacturing supplies. The former competitor was closing its operations and decided to sell the facility at ar Click the icon to view additional information.) ne asse - X al answers to the nea Data table Fair Value Description Building Land $ EA 3.200.000 1.600.000 864.000 Machinery and Equipment Inventory 183,500 Manufacturing supplies 52 500 $ 5,900.000 Total of the ass Eredits. Exclude explan ent Year Print Done tion of the building and the machinery and equipment, the sale of inventory, and use of the manufacturing supplies. A assets acquired. (Round interim percentages to the nearest percent, X% and your final More info The building has a remaining useful life of 20 years and Sonata expects the machinery and equipment to be productive for an additional five years from the date of acquisition. Sonata uses the straight-line method and does not use residual values when computing depreciation. Sonata accounts for inventory under the FIFO basis and expenses the supplies as consumed in operations. During the first year after the acquisition, the company sold all inventory acquired for $220,000 in cash and used 60% of the supplies in the production process. Assume Sonata uses a perpetual inventory system. Print Done of the building and the machinery and equipment, the sale of inventory, and use of the manufac OC - 3 DIT ES Prisen