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[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 $850,000. The estimated market values of the purchased assets are building, $490,000; land, $290,000; land improvements, $50,000; and four vehicles, $170,000. 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 $28,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.

[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 $850,000. The estimated market values of the purchased assets are building, $490,000; land, $290,000; land improvements, $50,000; and four vehicles, $170,000. 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 $28,000 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
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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nequieu nouv [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 $850,000. The estimated market values of the purchased assets are building, $490,000; land, $290,000; land improvements, $50,000; and four vehicles, $170,000. 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 $28,000 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 18 Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Total cost of Acquisition Estimated Market Value Percent of Total Apportioned Cost
Transcribed Image Text:nequieu nouv [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 $850,000. The estimated market values of the purchased assets are building, $490,000; land, $290,000; land improvements, $50,000; and four vehicles, $170,000. 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 $28,000 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 18 Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Total cost of Acquisition Estimated Market Value Percent of Total Apportioned Cost
Complete this question by entering your answers in the tabs below. Required 1A Required 1B Allocation of total cost Allocate the lump-sum purchase price to the separate assets purchased. Building Land Land improvements Vehicles Total January 01 Date General Journal Required 2 Show Transcribed Text Debit Credit Estimated Market Value $ 490,300 $ 490,300 Note: Enter debits before credits. Record the costs of lump-sum purchase. Required 3 Show Transcribed Text Percent of Total 55 % % % % 55 % Required 3 Journal entry worksheet X X < Required 1A x X < Required 18 Total cost of Acquisition View transaction list Complete this question by entering your answers in the tabs below. Prepare the journal entry to record the purchase. Apportioned Cost $ 445,500 $ Required 18 > 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 $28,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Required 1A Required 1B Required 2 445,500 Required 3 Required 1A Required 18 Required 2 Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $28,000 salvage value. (Round your answer to the nearest whole dollar.) Depreciation expense on building Required 3 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1A Required 1B Allocation of total cost Allocate the lump-sum purchase price to the separate assets purchased. Building Land Land improvements Vehicles Total January 01 Date General Journal Required 2 Show Transcribed Text Debit Credit Estimated Market Value $ 490,300 $ 490,300 Note: Enter debits before credits. Record the costs of lump-sum purchase. Required 3 Show Transcribed Text Percent of Total 55 % % % % 55 % Required 3 Journal entry worksheet X X < Required 1A x X < Required 18 Total cost of Acquisition View transaction list Complete this question by entering your answers in the tabs below. Prepare the journal entry to record the purchase. Apportioned Cost $ 445,500 $ Required 18 > 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 $28,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Required 1A Required 1B Required 2 445,500 Required 3 Required 1A Required 18 Required 2 Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $28,000 salvage value. (Round your answer to the nearest whole dollar.) Depreciation expense on building Required 3 >
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