4 required parts in this problem 8 Timberly Construction negotiates a lump-sum p

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4 required parts in this problem

8 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, 2017, at a total cash price of $820000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building. $446.200; land. $310.400, land improvements. $67900; and four vehicles, $145,500. The company's fiscal year ends on December 31 Required 1-a. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased 1-b. Prepare the journal entry to record the purchase 2. Compute the depreciation expense for year 2017 on the building using the straight-line method, assuming a 15-year life and a $29.000 salvage value 3. Compute the depreciation expense for year 2017 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 IA Required 18 Required 2 Required 3 Prepare a table to allcate the lump- sum purchase pnice to the separate assets urchased Percent of Total Total cost of Apportioned Appraised Value of totalAp ueAcquisition Cost Land Total 01% Required 18>

Explanation / Answer

Timberly Construction Requirement 1A Allocation of Total cost Appraised Value % of Total Appriased Value Total Cost of acqusition Apportioned Cost Building 446200 46 820000 377200 Land 310400 32 820000 262400 Land Improvments 67900 7 820000 57400 Vehicles 145500 15 820000 123000 970000 100 820000 Requirement 1B Date/S.N. Account title & Explanation Debit Credit Amount in $ Amount in $ Building 377200 Land 262400 Land Improvments 57400 Vehicles 123000 Cash 820000 Requirement 2 Depreciation on Building       = (Cost-Salvage value)/Useful life =(377200-29000)/15 23213.33 Requirement 3 Depreciation on Land improvements      =2*(1/useful life)*Book Value at the beginning period =2*1/5*57400 22960 We appreciate the rating of our answers Thank you

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