To add to his growing chain of grocery stores, on January 1, 2012, Danny Marks bought a grocery store of a small competitor for $520,000. An appraiser, hired to assess the acquired assets' value, determined that the land, building, and equipment had market values of $200,000, $150,000, and $250,000, respectively.
Required:
1.What is the acquisition cost of each asset? Do not round intermediate calculations. If required, round your final answers to the nearest dollar.
2.Danny plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2012 on these newly acquired assets. You can assume zero residual value for all assets. Do not round intermediate calculations. If required, round your final answers to the nearest dollar.