On March 31, 2011, the Herzog Company purchased a factory complete with machinery and equipment. On March 31, 2011, the Herzog Company purchased a factory complete with machinery and equipment. Question On March 31, 2011, the Herzog Company purchased a factory complete with machinery and equipment. The allocation of the total purchase price of $1,000,000 to the various types of assets along with estimated useful lives and residual values are as follows: Assets Save your time! Proper editing and formatting Free revision, title page, and bibliography Flexible prices and money-back guarantee ORDER NOW Cost Estimated Residual Value Estimated Useful Life in Years Make sure you submit a unique essay Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. 100% ORIGINAL ORDER NOW Land 100,000 N/A N/A building 500,000 none 25 Machinery 240,000 10% of cost 8 Equipment 160,000 13,000 6 Total 1,000,000 On June 28,2012, machinery included in the March 31, 2011, purchase that cos $100,000 was sold for $80,000. Herzog uses the straight-line depreciation method for buildings and machinery and the sum-of-the-years’-digits method for equipment. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compare depreciation expense on the building, machinery, and equipment for 2011. 2. Prepare journal entries to record (1) depreciation on the machinery sold on June 29,2012, and (2) the sale of machinery. 3. Compute depreciation expense on the building, remaining machinery, and equipment for 2012.