Required information

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Timberly Construction makes a lump$-$sum purchase of several assets on January $1$ at a total cash price of $$840,000.$ The estimated market values of the purchased assets are building, $$460,000$; land, $$276,000$; land improvements, $$73,600$; and four vehicles, $$110,400.$

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 $$31,000$ salvage value.

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

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.

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