Required LA Required 18 Required 2Prepare the journal entry to record the purchase.Journal entry worksheetRecord the costs of lump-sum purchase.Noter des before credits.January 01Required 2RecordedGeneral JournalRequired LA Required S2 Required 2 Required 3Compute the first year depreciation expense on the building using the straight-line method, assuming a 15-year life and a$31.000 selvage value. (Round your answer to the nearest whole dollen)Depreciation experson buildingComplete this question by entering your answers in the tabe below.Required 3 >>Required LA Required2 Requind 3Compute the first year depreciation expense on the land improvements auming a five-year life and double-declining-balance [The following information applies to the questions displayed below.]Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. Theestimated market values of the purchased assets are building, $432,400; land, $282,000; land improvements, $37,600;and four vehicles, $188,000.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 $31,000salvage value.3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balancedepreciation.Complete this question by entering your answers in the tabs below.Required 1A Required 18 Required 2 Required 3Allocate the lump-sum purchase price to the separate assets purchased.Allocation of totalcostBuildingLandLand improvementsVehiclesTotalEstimatedMarket ValuePercent of Total%6%6%6%6Xx< Required 1ATotal cost ofAcquisitionApportionedCostRequired 1B >

Name: Required LA Required 18 Required 2Prepare the journal entry to record
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Description: Required LA Required 18 Required 2Prepare the journal entry to record the purchase.Journal entry worksheetRecord the costs of lump-sum purchase.Noter des before credits.January 01Required 2RecordedGeneral JournalRequired LA Required S2 Required 2 Re

Lump-sum asset purchase refers to the purchase of different class of assets like plant, equipment,…

Business

Accounting

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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