Timberly Construction makes a lump sum purchase of several assets on January 1 at a total cash price of $900,000 The estimated market values of the purchased assets are building, $508,800 land, $297,600 land improvements, $28,800 and four vehicles, $124,800 Required1 Allocate the lump sum purchase price to the separate assets purchased 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 $27,000 salvage value 3 Compute the first year depreciation expense on the land improvements assuming a five year life and double declining balance depreciation Allocate the lump sum purchase price to the separate assets purchased 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 $27,000 salvage value 3 Compute the first year depreciation expense on the land improvements assuming a five year life and double declining balance depreciation Analysis Component4 Compared to straight line depreciation, does accelerate

Question

Timberly Construction makes a lump sum purchase of several assets on January 1 at a total cash price of $900,000  The estimated market values of the purchased assets are building, $508,800  land, $297,600  land improvements, $28,800  and four vehicles, $124,800 Required1 Allocate the lump sum purchase price to the separate assets purchased  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 $27,000 salvage value 3 Compute the first year depreciation expense on the land improvements assuming a five year life and double declining balance depreciation  Allocate the lump sum purchase price to the separate assets purchased  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 $27,000 salvage value  3  Compute the first year depreciation expense on the land improvements assuming a five year life and double declining balance depreciation  Analysis Component4 Compared to straight line depreciation, does accelerate

Accepted Answer

The Answer is in the image, click to view ...

Question

Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Forensic Analytics Methods And Techniques For Forensic Accounting Investigations

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question