Problem 10-1A (Algo) Part 1-3 Required: 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 $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of the purchased assets are building, $526,500; land, $263,250; land improvements, $39,000; and four vehicles, $146,250. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Total Estimated Market Value $ Required 3 0 Percent of Total % % % % 0% X x X X X Total cost of Acquisition Apportioned Cost $ 0

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 10-1A (Algo) Part 1-3
Required:
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 $31,000
salvage value.
3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance
depreciation.
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The
estimated market values of the purchased assets are building, $526,500; land, $263,250; land improvements, $39,000;
and four vehicles, $146,250.
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B Required 2
Allocate the lump-sum purchase price to the separate assets purchased.
Allocation of total
cost
Building
Land
Land improvements
Vehicles
Total
Estimated
Market Value
$
Required 3
0
Percent of Total
%
do
%
%
X
0%
X
X
% X
Total cost of
Acquisition
Apportioned
Cost
$
Transcribed Image Text:Problem 10-1A (Algo) Part 1-3 Required: 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 $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of the purchased assets are building, $526,500; land, $263,250; land improvements, $39,000; and four vehicles, $146,250. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Total Estimated Market Value $ Required 3 0 Percent of Total % do % % X 0% X X % X Total cost of Acquisition Apportioned Cost $
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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