Timberly Constructionmakes a lump-sum purchase of several assets on January 1 at a total cash price of $820,000. The estimated market values of the purchased assets are building, $477,600; land, $258,700; land improvements, $59,700; and four vehicles, $199,000.

1-a.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 $32,000 salvage value.

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