Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2015, at a total cash price of $820,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $427,800; land, $260,400; land improvements, $65,100; and four vehicles, $176,700. The companys fiscal year ends on December 31.

1.1	Prepare a table to allocate the lump-sum purchase price to the separate assets purchased.

1.2

Prepare the journal entry to record the purchase.

2.Compute the depreciation expense for year 2015 on the building using the straight-line method, assuming a 15-year life and a $28,000 salvage value. (Round your answers to the nearest whole dollar.)

3.	Compute the depreciation expense for year 2015 on the land improvements assuming a five-year life and double-declining-balance depreciation.