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 $$830,000.$ The

estimated market values of the purchased assets are building, $$518,400$; land, $$326,400$; land improvements, $$67,200$;

and four vehicles, $$48,000.$

Required:

$1-$a$.$ Allocate the lump$-$sum purchase price to the separate assets purchased.

$1-$b$.$ Prepare the journal entry to record the purchase.

Compute the first$-$year depreciation expense on the building using the straight$-$line method, assuming a $15-$year life and a $$32,000$

salvage value.

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 $1$A $,$ Required $1$B

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

Required information

Journal entry worksheet

$1$

Record the costs of lump$-$sum purchase.

Note: Enter debits before credits.

Required $1$A Required $1$B $,$ Required $2$

Compute the first$-$year depreciation expense on the building using the straight$-$line method, assuming a $15-$year life and a

$$32,000$ salvage value.

Note: Round your answer to the nearest whole dollar.

Depreciation expense on building

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

depreciation.