Required information Problem 8-1A 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, $497,250; land, $302,250; land improvements, $39,000; and four vehicles, $136,500. 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. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Appraised Value Percent of Total Appraised Value Apportioned Cost Total cost of Acquisition $ 850,000 $ 850,000 Building 42 X % $ $ 497,250 302,250 352,750 X 547,750 X Land 36 X % 39,000 5 X % $ $ 850,000 811,000 Land improvements Vehicles 17 X % $ 850,000 136,500 975,000 713,500 2,425,000 Total $ 100 % $