Problem $7-2$A $($Static$)$ Determine the acquisition cost of equipment $($LO$7-1)$

Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold its two$-$year$-$old ovens at a discount for $$700,000.$ Great Harvest incurred and paid freight costs of $$35,000,$ and its employees ran special electrical connections to the ovens at a cost of $$5,000.$ Labor costs were $$37,800.$ Unfortunately, one of the ovens was damaged during installation, and repairs cost $$4,000.$ Great Harvest then consumed $$900$ of bread dough in testing the ovens. It installed safety guards on the ovens at a cost of $$1,500$ and placed the machines in operation.

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Required:

$1.$ Complete the following schedule to show the amount at which the ovens should be recorded in Great Harvest$$s Equipment account.

$2.$ Indicate where any amounts not included in the Equipment account should be recorded.

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$$Book ValueFair ValueCurrent assets$ $11,000,000$$ $14,000,000$Property, plant, and equipment$26,400,00032,400,000$Other assets$2,600,0003,600,000$Current liabilities$7,000,0007,000,000$Long$-$term liabilities$12,000,00011,000,000$

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Required:

Calculate the amount paid for goodwill

$[$The following information applies to the questions displayed below.$]$

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Cheesesteak Sandwich Shop had the following long$-$term asset balances as of January $1,2024$:

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$$CostAccumulated DepreciationBook ValueLand$$93,0000$$$93,000$Building$458,000$$$(87,020)370,980$Equipment$211,400(49,600)161,800$Patent$240,000(96,000)144,000$

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Cheesesteak purchased all the assets at the beginning of $2022.$

The building is depreciated over a $20-$year service life using the double$-$declining$-$balance method and estimating no residual value.

The equipment is depreciated over a $8-$year service life using the straight$-$line method with an estimated residual value of $$13,000.$

The patent is estimated to have a five$-$year useful life with no residual value and is amortized using the straight$-$line method.

Depreciation and amortization have been recorded for $2022$ and $2023($first two years$).$