Willo Company recently negotiated a lump-sum purchase of several assets from a road equipment dealer who was planning to change locations. The purchase was completed on September 30, 2019, at a total cash price of $870,000 and included a garage with land and certain land improvements and a new heavy, general-purpose truck. The estimated fair market values of the assets were: garage, $552,750; land, $331,650; land improvements, $100,500; and truck, $20,100. Willo has a December 31 year-end.

REQUIRED:

1. Prepare a schedule to allocate the lump-sum purchase price to separate assets that were purchased. Also present the general journal entry to record the purchase.
2. Calculate the 2020 depreciation expense on the garage using the straight-line method and assuming a 15-year life and a $37,500 salvage value.
3. Calculate the 2019 depreciation expense on the land improvements assuming an eight-year life and double-declining-balance depreciation.
4. The truck is expected to last five years and have a salvage value of $2,250. Prepare a schedule showing each year's depreciation on the truck, assuming (a) five-year straight-line depreciation and (b) double-declining-balance depreciation.