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, $477,600; land, $338,300; land improvements, $39,800; and four vehicles, $139,300. Required: 1-8. 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.

Timberly Construction makes a lump-sum purchase of several assets on January 1 at at total cash price of $800,000. The estimated market values of the purchased assets are building, $477,600, land, $338,300, land improvements, $39.800 : . and four vehicles, $139,300. Required: -o. Allocate the lump-sum purchase price to the separate assets purchased. -b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the bulding 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