Please prepre journal entries. Brown Company paid cash to purchase the asset of Coffee CompanyOn January 1, 2019. Information is as follows.Total cash paid - $3,500,000Assets required:Land- $600,000Building- $500,000Machinery- $500,000Patents- $500,000The building is depreciated using the double-declining balances method. Otherinformation is:Salvage value- $50,000Estimated useful life in years- 40The machinery is depreciated using the units of production method. Otherinformation is:Salvage value, percentage of cost- 10%Estimated total production output in- 200,00Actual production in units was as:2019- 40,0002020- 60,0002021- 20,000The patents are amortized on a straight line basis. They have no salvage valueEstimated useful life of patents in 30On December 31, 2020, the value of the patents was estimated to be $100,000Where applicable, the company uses 2 year rule to calculate depreciation andamortization on expense in the years of acoustic and disposal. Its fiscal year-end isDecember 31.

Name: Please prepre journal entries. Brown Company paid cash to purchase the
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Please prepre journal entries. Brown Company paid cash to purchase the asset of Coffee CompanyOn January 1, 2019. Information is as follows.Total cash paid - $3,500,000Assets required:Land- $600,000Building- $500,000Machinery- $500,000Patents- $500,0