Required information [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 $810,000. The estimated market values of the purchased assets are building, $502,200; land, $306,900; land improvements, $37,200; and four vehicles, $83,700. 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 $29,000 salvage value. 3. Compute the first-year depreciation expense 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 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Estimated Market Value Percent of Total Total cost of Acquisition Apportioned Cost Building % x Land % x Land improvements % x Vehicles Total % x $ 0 0% $ 0 Required 1A Required 1B >
Required information [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 $810,000. The estimated market values of the purchased assets are building, $502,200; land, $306,900; land improvements, $37,200; and four vehicles, $83,700. 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 $29,000 salvage value. 3. Compute the first-year depreciation expense 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 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Estimated Market Value Percent of Total Total cost of Acquisition Apportioned Cost Building % x Land % x Land improvements % x Vehicles Total % x $ 0 0% $ 0 Required 1A Required 1B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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 $810,000. The
estimated market values of the purchased assets are building, $502,200; land, $306,900; land improvements, $37,200;
and four vehicles, $83,700.
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 $29,000
salvage value.
3. Compute the first-year depreciation expense 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 1A Required 1B Required 2 Required 3
Allocate the lump-sum purchase price to the separate assets purchased.
Allocation of total
cost
Estimated
Market Value
Percent of Total
Total cost of
Acquisition
Apportioned
Cost
Building
%
x
Land
%
x
Land improvements
%
x
Vehicles
Total
% x
$
0
0%
$
0
Required 1A
Required 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d40b387-7bd5-42a8-b7e1-e72b53e42804%2F3fbc236d-fbc5-4755-a135-bcdd4966876b%2Fugb9ht_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 $810,000. The
estimated market values of the purchased assets are building, $502,200; land, $306,900; land improvements, $37,200;
and four vehicles, $83,700.
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 $29,000
salvage value.
3. Compute the first-year depreciation expense 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 1A Required 1B Required 2 Required 3
Allocate the lump-sum purchase price to the separate assets purchased.
Allocation of total
cost
Estimated
Market Value
Percent of Total
Total cost of
Acquisition
Apportioned
Cost
Building
%
x
Land
%
x
Land improvements
%
x
Vehicles
Total
% x
$
0
0%
$
0
Required 1A
Required 1B >
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