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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 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,
$458,150; land, $317,900; land improvements, $65,450; and four
vehicles, $93,500. 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 $30,000 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.

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