Problem 8-1A (Algo) Plant asset costs; depreciation methods LO C1, P1 [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 $850,000. The estimated market values of the purchased assets are building, $463,200, land, $279,850; land improvements, $38,600; and four vehicles, $183,350. Problem 8-1A (Algo) Part 1-3 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 $30,000 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 1B Required 2 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Total Estimated Market Value $ Required 3 0 Percent of Total % % % % 0% X x X x Total cost of Acquisition Apportioned Cost $ 0

Problem 8.1A (Algo) Plant asset costs; depreciation methods LO C1, P1 The following information applies to the questions displayed betiow! Timberly Construction makes a lump-sum purchase of several assets on Janvary tat a total cash price of $850,000. The estimated market values of the purchased assets are bulding. $463,200, land, $279,850; land improvements, $38,600, and four vehicies $183,350 Problem 8-1A (Algo) Part 1-3 Required: 1-0. Allocate the lump-sum purchase price to the separate assets purchased 1.b. Piepare the journat entry to tecord the purchase. 2 Compute the firstyear depreciation expense on the buiding using the straight-ine method, assuming a 15 -year life and a $30,000 salvage value 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-bakance depreciation. Complete this question by entering your answers in the tabs below. Allocate the fump sum purchase price to the separate ansets purchased