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Timberly Construction makes a lump - sum purchase of several assets on January 1 at a total cash price of $ 8 5 0 ,
Timberly Construction makes a lumpsum purchase of several
assets on January at a total cash price of $ The
estimated market values of the purchased assets are building,
$; land, $; land improvements, $; and four
vehicles, $ Required: a Allocate the lumpsum purchase
price to the separate assets purchased. b Prepare the journal
entry to record the purchase. Compute the firstyear
depreciation expense on the building using the straightline
method, assuming a year life and a $ salvage value.
Compute the firstyear depreciation expense on the land
improvements assuming a fiveyear life and doubledecliningbalance
depreciation.Complete this question by entering your answers
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