Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Timberly Construction makes a lump sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of

image text in transcribed
image text in transcribed
image text in transcribed
Timberly Construction makes a lump sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of the purchased assets are building, $427800; land, $260,400, land improvements, 565100, and four vehicles. $176.700. 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 $29,000 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 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total COSE Appraised Value Percent of Total Appraised Value Total cost of Acquisition Apportioned Cost 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 $29.000 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 tobs below. Required 1A Required 18 Required 2 Required a Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $29,000 salvage value. (Round your answer to the nearest whole dollar.) Depreciation expense on building 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 ite and a $29.000 salvage value 3. Compute the first-year depreciation expense on the land improvements assuming a five-year Me and double declining balance depreciation Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining- balance depreciation. nereciation expense on land improvements

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Computer Accounting With Quickbooks 2021

Authors: Author

20th Edition

1264069200, 9781264069200

More Books

Students also viewed these Accounting questions

Question

Will you be able to pay your bills?

Answered: 1 week ago

Question

Explain the causes of indiscipline.

Answered: 1 week ago

Question

What resources will these tactics require?

Answered: 1 week ago

Question

What level of impact will this tactic make on the key public?

Answered: 1 week ago

Question

Have you used powerful language in your message?

Answered: 1 week ago