Peterson Company Purchased Land,building,and Equipment for a Total Cash Price

Peterson Company purchased land,building,and equipment for a total cash price of $900,000.An independent appraiser told management that if the assets had been acquired separately,the company would have paid $300,000,$700,000,and $200,000,respectively,for each of the assets purchased.Write your answers on the lines provided and show your work in the space provided below each question.
1.Use the relative fair market value method to determine how much of the $900,000 purchase price should be used for each of the three separate assets.
$______________ should be used for the cost of the land.
$______________ should be used for the cost of the building.
$______________ should be used for the cost of the equipment.
2.Determine how much depreciation expense the company will have each full year using the straight-line method and the following assumptions:
∙ The building has a 30-year useful life and a zero salvage value.
∙ The equipment has an 8-year useful life and a $50,000 salvage value.
$______________ annual depreciation expense for the building
$______________ annual depreciation expense for the equipment