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Problem $8-1$A $($Algo$)$ Plant asset costs; depreciation methods LO C$1,$ P$1$

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Timberly Construction makes a lump$-$sum purchase of several assets on January $1$ at a total cash price of $$840,000.$ The estimated market values of the purchased assets are building, $$465,600$; land, $$281,300$; land improvements, $$48,500$; and four vehicles, $$174,600.$

Problem $8-1$A $($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 $$28,000$ salvage value.

$3.$ Compute the first$-$year depreciation expense on the land improvements assuming a five$-$year life and double$-$declining$-$balance depreciation.