On January 1,2014,Aaron Simpson Bought a Farm Store of a Small

question 109

Essay

On January 1,2014,Aaron Simpson bought a farm store of a small competitor for $620,000.An appraiser,hired to assess the acquired assets' value,determined that the land,building,and equipment had market values of $300,000,$215,000,and $270,000,respectively.
REQUIRED:
1.What is the acquisition cost of each asset? Prepare a journal entry to record the acquisition.
2.Simpson plans to depreciate the building on a straight-line basis for 30 years and the equipment over 16 years .Determine the amount of depreciation expense for 2014 on these newly acquired assets.You can assume zero residual value for all assets.
3.How would the assets appear on the balance sheet as of December 31,2014?

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American Ideals

The foundational principles that are believed to unite people in the United States, such as liberty, equality, democracy, individualism, unity, and diversity.

De Jure

Refers to something that is legally recognized or established by law.

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Practices or policies sanctioned by law that differentiate between categories of people, often based on race, gender, or other characteristics.

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An approach in relationships based on mutual exchange, where both parties contribute and benefit equally.