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 $800,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building. $509,600; land, $294,000; land improvements, $49,000, and four vehicles $127,400. 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 $28,000 salvage value. es 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 1ARequired 1B Required 2 Required 3 Prepare a table to allocate the lump-sum purchase price to the separate assets purchased Allocation of total AppraisedPercent of Total ned Total cost of Acquisition Cost Value Appraised ValueX Complete this question by entering your answers In the tabs below. Required 1A Required 1B Required 2 Required 3 Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. Allocation of totalAppraised Percent of Total Total cost of Apportioned Acquisition cost Value Appraised Value Cost Building Land Land improvements Vehicles Total % x Required 1B> Next View transaction list Journal entry worksheet Record the costs of lump-sum purchase. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 pnce to te sepai ate assELs purcliaseu. ase 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 a $28,000 salvage value. 3. Compute the depreciation expense for year 2017 on the land improvements assuming a five-year life and double-declinin depreciation Complete this question by entering your answers in the tabs below Required 1A Required 1B Required 2Required 3 Compute the depreciation expense for year 2017 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.) iation expense on building Required 1B Required 3> 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 lie anda $28,000 salvage value 3. Compute the depreciation expense for year 2017 on the land improvements assuming a five-year life and double-declining-bala depreciation. Complete this question by entering your answers In the tabs below. Required 1A Required 1B Required 2 R the depreciation expense for year 2017 on the land improvements assuming a five-year life and double-dectining- balance depreciation. on Required 2
