Question -- PLANT ASSETS AND DEPRECIATION METHODS PROBLEM:

Century Company negotiated a lump-sum purchase of several assets from a contractor who was retiring.

The purchase was completed on January 1 of the current year, at a total cash price of $1,500,000 for a building, land land improvements, and five trucks.

The estimated market value of the assets are: Building $890,000; Land $427,200; Land improvements $249,200; and five trucks $213,600.

The company's fiscal year ends December 31.

REQUIREMENT

1.-Using: The Straight-line method; The Declining balance method, and The sum of the Years digit method, calculate:

a).- The annual depreciation for the building over the life of this asset. Assume a 12 years life and a $120,000 salvage value. (Aquisition historic cost - Estimated life in years - Estimated Salvage value)

b).-Show Journal entries using each method for the first two years on the general ledger.

REQUIREMENT

2.- Show the annual depreciation on the FIVE TRUCKS using:

c)-Straight line method, ( Accounting periood - created formula showing the Depreciation Expense).

d).-The declining balance method (Accounting period - Current book value - Depreciation Rate, Depreciation Expense, with a mannualy created formula).

e).-The sum-of-the-years digits methods. ( Accounting period - Depreciation Expense). Assume a 5 year life and a salvage value of $3,000 each, or $15,000.

** The company uses the composite method for simplicity for all trucks. This means you will calculate the total just one time for all five trucks together.Create a math formula to solve for depreciation.

f).- Journal entries with each method.

REQUIREMENT

3.- Annual depreciation of the land improvements using the Straight-line method only. Assume a 10 years life and no salvage value. ( Create a manual formula.)

***Thanks for your help and please,show all required steps along with your calculations to understand this project. and also no partial answers please.

NOTE: This is all the information given in the text book.*