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 $830,000. The estimated market values of the purchased assets are building, $467,500; land, $243,100; land improvements, $56,100; and four vehicles, $168,300. 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 18 Required 2 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Estimated Market Value S Required 3 Percent of Total epreciation expense on building % Required 3 > Journal entry worksheet 1 Record the costs of lump-sum purchase. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry < Required 2 Debit Required 3 > Credit Required 1A Required 18 Required 2 Required 3 Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining- balance depreciation. Depreciation expense on land improvements View general journal
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 $830,000. The estimated market values of the purchased assets are building, $467,500; land, $243,100; land improvements, $56,100; and four vehicles, $168,300. 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 18 Required 2 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Estimated Market Value S Required 3 Percent of Total epreciation expense on building % Required 3 > Journal entry worksheet 1 Record the costs of lump-sum purchase. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry < Required 2 Debit Required 3 > Credit Required 1A Required 18 Required 2 Required 3 Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining- balance depreciation. Depreciation expense on land improvements View general journal
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.1AP
Related questions
Question
![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 $830,000. The
estimated market values of the purchased assets are building, $467,500, land, $243,100; land improvements, $56,100;
and four vehicles, $168,300.
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 3
Allocate the lump-sum purchase price to the separate assets purchased.
Required 1A Required 18 Required 2
Allocation of total
cost
Building
Land
Land improvements
Vehicles
Total
Estimated
Market Value
S
Percent of Total
|*
Depreciation expense on building
% x
% |*
0%
< Required 1A
Total cost of
Acquisition
Required 1A Required 18 Required 2 Required 3
Apportioned
A Cost
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.
Note: Round your answer to the nearest whole dollar.
< Required 1B
Required 1B >
Required 3 >
Journal entry worksheet
Record the costs of lump-sum purchase.
Note: Enter debits before credits.
Date
January 01
Record entry
General Journal
Required 1A Required 18
Clear entry
< Required 2
Debit
Required 2 Required 3
Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-
balance depreciation.
Depreciation expense on land improvements
Required 3 >
Credit
View general Journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fe61787-87ec-42ef-9b74-8862c323e0b5%2Ffb8d4529-1395-4d86-9e7b-52e562fec25e%2F6rbcurl_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 $830,000. The
estimated market values of the purchased assets are building, $467,500, land, $243,100; land improvements, $56,100;
and four vehicles, $168,300.
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 3
Allocate the lump-sum purchase price to the separate assets purchased.
Required 1A Required 18 Required 2
Allocation of total
cost
Building
Land
Land improvements
Vehicles
Total
Estimated
Market Value
S
Percent of Total
|*
Depreciation expense on building
% x
% |*
0%
< Required 1A
Total cost of
Acquisition
Required 1A Required 18 Required 2 Required 3
Apportioned
A Cost
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.
Note: Round your answer to the nearest whole dollar.
< Required 1B
Required 1B >
Required 3 >
Journal entry worksheet
Record the costs of lump-sum purchase.
Note: Enter debits before credits.
Date
January 01
Record entry
General Journal
Required 1A Required 18
Clear entry
< Required 2
Debit
Required 2 Required 3
Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-
balance depreciation.
Depreciation expense on land improvements
Required 3 >
Credit
View general Journal
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