d $!$ Allocate the lump$-$sum purchase price to the separate assets purchased. Journal entry worksheet

$1$

Record the costs of lump$-$sum purchase.

Note: Enter debits before credits. Required $1$ A

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.

Note: Round your answer to the nearest whole dollar.Compared to straight$-$line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life?

Is tax payment less under accelerated depreciation?

Required information

$[$The following information applies to the questions displayed below.$]$

Timberly Construction makes a lump$-$sum purchase of several assets on January $1$ at a total cash price of

$$820,000.$ The estimated market values of the purchased assets are building, $$508,800$; land, $$249,600$; land

improvements, $$48,000$; and four vehicles, $$153,600.$

Required:

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

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

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.

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

depreciation.