To expand its business, Renee Company paid $760,000 for most of the property, plant, and equipment of a small trucking company that was going out of business. Before agreeing to the price, Renee hired a consultant for $10,000 to appraise the assets. The appraised values were as follows: Assessed Property Value Land $120,000 Building 440,000 Trucks 144,000 Equipment 96,000 Total $800,000 Renee issued two checks totaling $770,000 to acquire the assets and pay the consultant on July 1. Renee depreciated the assets using the straight-line method on the building and on the equipment, and the double-declining balance method on the trucks. Estimated useful lives and salvage values were as follows: Salvage Useful Life Value Building 20 years $42,000 Trucks 4 years 15.000 Equipment 8 years 10,000 a. Calculate the amounts allocated to the various types of plant assets acquired on July 1. Asset Land Building Trucks Equipment Total 115,500 423,500 138.600 92.400 b. Prepare the July 1 journal entry to record the purchase of the assets and the payment to the consultant. Combine both cash disbursements into one journal entry. General Journal Date Description Debit Credit July 1 Land 115,500 0 Building 423,500 0 Trucks 138,600 0 Equipment 92,400 0 Cash 0 770,000 To record purchase of plant assets and payment to consultant, C. Prepare the December 31 journal entries to record depreciation expense for the year on the building, trucks, and equipment. (Round to the nearest dollar.) General Journal Date Description Debit Credit Dec 31 Depreciation Expense - Building 19,075 x 0 Accumulated Depreciation - Building 19,075 x To record depreciation on building. Dec. 31 Depreciation Expense - Trucks 30,900 x 0 Accumulated Depreciation - Trucks . 30,900 x To record depreciation on trucks. Dec 31 Depreciation Expense - Equipment 23,100 X 0 Accumulated Depreciation - Equipment 23,100 x To record depreciation on equipment