Problem 8-1A Plant asset costs; depreciation methods LO C1, P1 Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2015, at a total cash price of $810,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $499,500; land, $286,750; land improvements, $27,750; and four vehicles, $111,000. The companys fiscal year ends on December 31.

Required: 1.1 Prepare a table to allocate the lump-sum purchase price to the separate assets purchased.

3. value: 7.69 points Problem 8-1A Plant asset costs; depreciation methods LO C1, P1 Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2015, at a total cash price of $810,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $499,500; land, $286,750; land improvements, $27,750; and four vehicles, $111,000. The company's fiscal year ends on December 31. Required: 1.1 Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Appraised Value Percent of Total Appraised Value Total cost of Apportioned Acquisition Cost Building Land Land improvements Vehicles Total 499,500 286,750 27,750 111,000 925,000 $ 810,000 $ 810,000 $ 810,000 $ 810,000 x X $ 0% 0 1.2 Prepare the journal entry to record the purchase. View transaction list Journal entry worksheet Record the costs of lump-sum purchase. Note: Enter debits before credits. Date Debit Credit Jan 01 General Journal Building Land Land improvements Vehicles Cash Record entry Clear entry View general journal 2. Compute the depreciation expense for year 2015 on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. (Round your answers to the nearest whole dollar.) Depreciation expense on building 3. Compute the depreciation expense for year 2015 on the land improvements assuming a five-year life and double-declining-balance depreciation. Depreciation expense on land improvements