tosave Draw 8 5 v 5 , Page Layout Formulas Ch 8 Depn and disposa view Tell me Data Review A Calibri (Body) BIU E 11 A LA E = = EEE ab Wrap Text Merge & Center 2 B C D E F G H IEEE Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $4,500,000 Assets acquired: Land $800,000 Building $700.000 Machinery $800.000 Patents $700.000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $70,000 Estimated useful life in years The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 1096 Estimated total production output in TUUUUU Actual production in units was as 2019 20.000 2020 20.000 2021 30.000 The patents are amortized on a straight-line basis. They have no salv! Estimated useful life of patents in On December 31, 2020, the value of the patents was estimated to be $ 100.000 ert Page Layout Draw Formulas Data View Review Tell me Calibri (Body) v 11 A A UA = = = EEE 33 2 Wrap Text Mergo &q BIUV B C D E F G H Where applicable, the company uses the year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31. The machinery was traded on December 2, 2021 for new machinery. Other information is: Fair value of old machinery $400,000 Trade-in allowance $600.000 List price for new machinery $840,000 Estimated useful life of new machinery in Estimated salvage value of new $8.400 The new machinery is depreciated using the straight-line method and On August 14, 2023, an addition was made. This amount was material. Other relevant information is as follows: Amount of addition, paid in cash S400.000 Number of years of useful life from 2023 (original machinery and addition): Salvage value. percentage of addition 10% 20 Required. Prepare journal entries to record: 1 The purchase of the assets of Coffee 2 Depreciation and amortization expense on the purchased assets for 2019. 3 The decline (if any) in value of the patents at December 31 The trade-in of the old machinery and purchase of the new 5 Depreciation on the new machinery for 2021 Cost of the addition to the machinery on August 14.2023 7 Depreciation on the new machinery for 2023