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 $820,000. The estimated market values of the

image text in transcribed
image text in transcribed
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 $820,000. The estimated market values of the purchased assets are building. $471750: land. $314.500, land improvements, $46,250, and four vehicles $92,500 Problem 10-1A Part 1-3 Required: 1-6. 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 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 cost Appraised Value Percent of Total Appraised Value Total cost of Acquisition Apportioned $ X % % Building Land Land improvements Vehicles Total 471,750 314,500 46,250 92,500 925,000 X X % 0 % 5 0 Requin Required 1B > Journal entry worksheet 1 > Record the costs of lump-sum purchase. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Dll Claes Lin 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 building using the straight-line method, assuming a 15 year life and a $30,000 salvage value. (Round your answer to the nearest whole dollar.) Dopreciation expense on building Required 1A Required 1B Required 2 Required Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balan depreciation. Depreciation oxpense 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

Auditing Theory And Practice

Authors: C. William Thomas

1st Edition

0534013880, 978-0534013882

More Books

Students also viewed these Accounting questions

Question

Explain what is meant by the terms unitarism and pluralism.

Answered: 1 week ago