$1$

Required information

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Timberly Construction makes a lump$-$sum purchase of several assels on January $1$ at a tatal cash price of $$900,000.$ The estimated market values of the purchased assets are bullding. $$508,800$; land, $$297,600$; land improvements, $$28,800$; and four vehicles, $$124,800.$

Required:

$1-$a$.$ Allocate the lump$-$sum purchase price to the separate assets purchased.

$1-$b$.$ Prepare the joumal entry to record the purchase.

$2.$ Compute the first$-$year depreciation expense on the building using the straight$-$line method, assuming a $15-$year life and a $$27,000$ salvage value.

$3.$ Compute the first$-$year depreciation expense on the land improvements assuming a five$-$year life and double$-$declining$-$balance depreciation.

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Required $1A$

Required $1B$

Required $2$

Required $3$

Alocate the lump$-$sum purchase price to the separate assels purchased.