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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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…
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, $496,800; land, $248,400; land improvements, $27,600; and four vehicles, $147,200. 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-yea depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30,000 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 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Required 2…
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