On April 1, 2000, Mission Company paid $\$ 360,000$ in cash to purchase land, a building, and equipment. The appraised fair market values of the assets were as follows: land, $\$ 90,000$; building, $\$ 260,000$; and equipment, $\$ 50,000$. The company incurred legal fees of $\$ 3,000$ to determine that it would have a clear title to the land. Before the facilities could be used, Mission had to spend $\$ 2,500$ to grade and landscape the land, $\$ 4,000$ to put the equipment in working order, and $\$ 15,000$ to renovate the building. The equipment was then estimated to have a useful life of six years with no salvage value, and the building would have a useful life of 20 years with a net salvage value of $\$ 15,000$. Both the equipment and the building are to be depreciated on a straight-line basis. The company is on a calendar-year reporting basis.

1. Allocate the lump-sum purchase price to the individual assets acquired.

2. Prepare the journal entry to acquire the land, building, and equipment.

3. Prepare the journal entry to record the title search, put the equipment in working order, and renovate the building.

4. Prepare the journal entries on December 31,2000 , to record the depreciation on the building and the equipment.