Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8 Homework Help Sav Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
8 Homework Help Sav Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of the purchased assets are building, $450,800; land, $257,600; land improvements, $55,200, and four vehicles, $156,400. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal 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 $31,000 salvage value 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Appraised Value Total cost of Acquisition Apportioned Cost Building Land Land improvements Vehicles Total Percent of Total Appraised Value % % % % % x G 210 stv Required information Required 1A Required 1B Required 2 Required 3 Prepare the journal entry to record the purchase. View transaction list Journal entry worksheet Record the costs of lump-sum purchase. Nota: Enter debits before credits Date General Journal Debit Credit Jan 01 RI * 15 mas MacBook Air F2 80 000 000 F3 F4 F5 F6 F7 Required: 1a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal 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 $ salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double declining balan depreciation Complete this question by entering your answers in the tabs below. Required LA Required 18 Required 2 Required 3 Compute the first-year depreciation expense on the building using the straight-line method, assuming a 1year ife and $31,000 salvage value. (Round your answer to the nearest whole dollar) Depreciation personing MacBook Air * 80 POD 000 14 - * # 3 $ 4 % 5 & 7 6 8 9 2 0 E F W U 1 0 R T E Y H j L G S F D Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased 1-b. Prepare the journal 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 $31.000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year fe and double-declining-balance depreciation Complete this question by entering your answers in the tabs below. Required LA Required 11 Required 2 Required 3 Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining balance depreciation Depreciation on fundingrovement 115 MacBook Ai BO BRA COO 14 . . 73 # 3 $ 4 % 5 & 7 8 6 9 N 0 E W R I T S L F D G H

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Courageous Auditing Beyond Compliance Towards Being A Catalyst For Change

Authors: Kathy Rees

1st Edition

0648958108, 978-0648958109

More Books

Students also viewed these Accounting questions