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CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION6 Not complete Marked out of 32.00 P Flag question Allocation of Package Purchase Price and Depreciation Methods To expand its business, Small Company paid $1,054,000 for most of the property, plant, and equipment of a small trucking company that was going out of business. Before agreeing to the price, Small hired a consultant for $6,000 to appraise the assets. The appraised values were as follows Assessed Property Value Land Building Trucks Equipment 144,000 $180,000 660,000 216,000 Total $1,200,000 Small issued two checks totaling $1,060,000 to acquire the assets and pay the consultant on July 1. Small 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 Trucks Equipment 7years 10,000 20 years $42,000 4 years 15,000 Calculate the amounts located to the various ypes of plant asses acquired on uy Asset Total Land Building Trucks Equipment b. Prepare the July 1 journal entries to record the purchase of the assets and the payment to the consultant General Journal Date Description Debit Credit Jul.1 Land (3 Trucks 03 Equipment 03 Cash 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 To record depreciation on building Dec. 31 To record depreciation on trucks. Dec. 31 To record depreciation on equipment. Check

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