On January 1, 2023, Tsaab Inc. purchases land and a building for a lump sum purchase price of $800,000 cash. The appraised value of the land is $250,000 and the appraised value of the building is $750,000. Express the percentages as whole numbers with the % sign.

For -0- or zero, write out the word zero

Allocate the lump sum purchase price among the two assets.

Lump Sum Purchase Allocation

Asset	Appraised Value	% of total value	Allocated Cost
Land
Building
Total

Prepare the journal entry to record the lump sum purchase

DR: Land

DR: Building

CR: Cash

Tsaab expects to use the land and building in operations to generate revenue for 20 years, at which time they estimate the building will be worth $0 and the land will be worth $550,000. Building has zero salvage value.

Using the straight line method, what is the annual depreciation expense on the building?

Using the straight line method, what is the annual depreciation expense on the land?

Prepare the journal entry to record one year's depreciation?

DR: Depreciation Expense

CR: Accumulated Depreciation

What is the Net Book Value of the Building as of January 1, 2024?

What is the Net Book Value of the Land as of January 1, 2024?