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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,

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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, 2017, at a total cash price of $850,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $460,600; land, $264,600; land improvements, $58,800; and four vehicles, $196,000. The company's fiscal year ends on December 31. Required: 1-a. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the depreciation expense for year 2017 on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the depreciation expense for year 2017 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 10 Required 2 Required 3 Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. Allocation of total Appraised Value Total cost of Acquisition Apportioned Cost cost Percent of Total Appraised Value % % 90 % % Building Land Land improvements Vehicles Total X X X X Required 1A Required 18 Required 2 Required 3 Prepare the journal entry to record the purchase. View transaction list Journal entry worksheet 1 Record the costs of lump-sum purchase. Note: Enter debits before credits Date General Journal Debit Credit Jan 01 Required 1A Required 1B Required 2 Required 3 Compute the depreciation expense for year 2017 on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. (Round your answers to the nearest whole dollar) Depreciation expense on building Required 1A Required 1B Required 2 Required Compute the depreciation expense for year 2017 on the land improvements assuming a five-year life and double-declining- balance depreciation. Depreciation expense on land improvements

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