Question: Problems 1) Alexa Corp acquired several assets from Bonsai Corp. for $4,200,000. Assets acquired included a building, a stamping machine, and a forklift. An appraisal
Problems 1) Alexa Corp acquired several assets from Bonsai Corp. for $4,200,000. Assets acquired included a building, a stamping machine, and a forklift. An appraisal of the assets valued the building at $2,400,000, the press at $1,000,000, and the conveyor belt at $600,000. What is the value that will be assigned to each of these assets? 2) Gigi Industries purchased a machine that cost $360,000. It is expected that the machine will last 10 years and have a $10,000 salvage value. It is also expected that the machine will be able to be produce 2,000,000 units. a. Calculate the 1st and 2nd year of depreciation using the straight-line method. b. Calculate the 1st and 2nd year of depreciation using the Double Declining Balance method. c. Assuming 195,000 units were produced the 1* year, what is the depreciation of the machine for the 1" year using the units of production method? d. What is the book value of the truck at the end of the 1" year under each method
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