Timberly Construction negotiates a lump-sum purchase of several assets from a co
ID: 2382103 • Letter: T
Question
Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2010, at a total cash price of $920,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $515,000; land, $302,600; land improvements, $33,800; and four vehicles, $124,500. The companys fiscal year ends on December 31.
Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. (Round the "Percent of Total" to 4 decimal places and "Apportioned Cost" to the nearest dollar amount.The final value may not match the value in the question due to rounding difference. Omit the "$" and "%" signs in your response.)
Prepare the journal entry to record the purchase. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
Compute the depreciation expense for year 2010 on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Compute the depreciation expense for year 2010 on the land improvements assuming a five-year life and double-declining-balance depreciation. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2010, at a total cash price of $920,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $515,000; land, $302,600; land improvements, $33,800; and four vehicles, $124,500. The companys fiscal year ends on December 31.
Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. (Round the "Percent of Total" to 4 decimal places and "Apportioned Cost" to the nearest dollar amount.The final value may not match the value in the question due to rounding difference. Omit the "$" and "%" signs in your response.)
Estimated
Market Value Percent
of Total Apportioned
Cost Building $ % $ Land Land improvements Vehicles Total $ % $
Prepare the journal entry to record the purchase. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
Date General Journal Debit Credit Jan. 1 2010 (Click to select)CashLand ImprovementsLandVehiclesNote PayableInterest ExpenseAccounts PayableBuilding (Click to select)Note PayableInterest ExpenseLandVehiclesCashLand ImprovementsAccounts PayableBuilding (Click to select)BuildingLand ImprovementsCashNote PayableLandVehiclesAccounts PayableInterest Expense (Click to select)CashAccounts PayableVehiclesLandBuildingInterest ExpenseNote PayableLand Improvements (Click to select)Interest PayableMachineryAccounts PayableService RevenueLand ImprovementsVehiclesBuildingCash
27. value:
5.00 points Requirement 2:
Compute the depreciation expense for year 2010 on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Depreciation expense on building $
28. value:
15.00 points Requirement 3:
Compute the depreciation expense for year 2010 on the land improvements assuming a five-year life and double-declining-balance depreciation. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Depreciation expense on land improvement $
Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2010, at a total cash price of $920,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $515,000; land, $302,600; land improvements, $33,800; and four vehicles, $124,500. The companya s fiscal year ends on December 31. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. (Round the "Percent of Total" to 4 decimal places and "Apportioned Cost" to the nearest dollar amount.The final value may not match the value in the question due to rounding difference. Omit the "$" and "%" signs in your response.) Prepare the journal entry to record the purchase. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Compute the depreciation expense for year 2010 on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Compute the depreciation expense for year 2010 on the land improvements assuming a five-year life and double-declining-balance depreciation. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Explanation / Answer
.......... .......... .......... .........Appraised Val.
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