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Required information Problem 8-11 Plant asset costs; depreciation methods LO C1, P1 (The following information applies to the questions displayed below.) Timberly Construction makes a

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Required information Problem 8-11 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, $451,200; land, $288,000; land improvements, $67,200; and four vehicles, $153,600. Problem 8-1A 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 $29,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation

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