Timberly Construction makes a lump$-$sum purchase of several assets on January $1$ at a total cash price of $$810,000.$ The

estimated market values of the purchased assets are building, $$456,000$; land, $$266,000$; land improvements, $$47,500$;

and four vehicles, $$180,500.$

Problem $8-1$A $($Algo$)$ Part $1-3$

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 $$31,000$

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.

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