Question: 1. Ming Yue Company pays $368,250 for real estate plus $19,600 in closing costs. The real estate consists of land appraised at $166,320; land improvements appraised at $55,440; and a building appraised at $174,240. Allocate the total cost among the three purchased assets and prepare the journal entry to record the purchase.
2. In early January 2011, LabTech purchases computer equipment for $147,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $30,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.