Required information

The following information applies to the questions displayed beldw$]$

Timberly Construction makes a lump$-$sum purchase of severif liscets on January $1$ at a tatal cash price of $$810,000.$ The

estimated market values of the purchased assets are buiking, $177,600$; land, $$298,500$; land improvenents, $$59700$;

and four vehicles, $$159,200.$

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 $15-y$ ear life and a $$30,000$

salvage value.

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

depreciation.Journal entry worksheet

Record the costs of lump$-$sum purchase.

Nate: Enter debits before credits.