The following information is provided for LAX, LLC for January 1, 2021: Assets Vehicles 995,000 Land Salvage value Life in years Life in hours Equipment 500,000 6.50 10,500,000 Salvage value Life in years Life in miles 24,000,000 Land improv. Office building Factory Equipment Vehicles Total basket value: Appraisal $ 62,000,000 8,000,000 142,000,000 154,000,000 30,000,000 4,000,000 400,000,000 Hours in 2021 1,500,000 Miles in 2021 5,000,000 $ Cash paid for basket: $ 385,000,000 1. Prepare the allocation table for the basket purchase: Appraisal $ Percent of total Cash paid Allocation Asset Land Land improv. Office building Factory Equipment Vehicles 0.00% 2. Make the journal entry to post the assets: Date Accounts Debits Credits 1/1/21 3. Calculate the annual depreciation expense for the equipment and vehicles: Equipment Vehicles Straight-line method: Activity-based method: Difference: Formula (cost-salvage value) / life in years (cost - salvage value) / life in units x 2021 usage 4. Prepare the straight-line depreciation table for the equipment: Annual depreciation Accumulated depreciation Year Equipment Book value 2021 2022 2023 2024 2025 2026 2027 5. If LAX sold half of the equipment at the end of year 2025 for $3,000,000, prepare the journal entry: Date Accounts Debits Credits 12/31/25