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 $$800,000.$ The estimated market values of the purchased assets are building, $$523,800$; land, $$261,900$; land improvements, $$48,500$; and four vehicles, $$135,800.$

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.

Complete this question by entering your answers in the tabs below.

Required $1A$

Required $1$B

Required $2$

Required $3$

Allocate the lump$-$sum purchase price to the separate assets purchased.

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