Required information 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, $518,400; land, $268,800, land improvements, $28,800 and four vehicles, $144,000, Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 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. 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 18 Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total COS Appraised Value Percent of Total Appraised Value Apportioned Cost Total cost of Acquisition % x % % X Building Land Land improvements Vehicles Total X % % Required 1 Required 1B > Required information 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 10 Required 2 Required 3 Prepare the journal entry to record the purchase. Vlow transaction list Journal entry worksheet 1 Record the costs of lump-sum purchase. Note Enter debits before credits Data General Journal Debit Credit Jan 01 Record entry Clear entry View general Journal Required information 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, $518,400, land, $268,800; land improvements, $28,800; and four vehicles. $144,000. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 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. 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 Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining- balance depreciation. Depreciation expense on land improvements
