Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. The company’s fiscal year ends on December 31.Required:a. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. b. Prepare the journal entry to record the purchase. c. Compute the depreciation expense for year 2018 on the building using the straight-line method, assuming a 15-year life and a $27,000 salvage value. d. Compute the depreciation expense for year 2018 on the land improvements assuming a five-year life and double-declining-balance depreciation. e. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased.
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Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price...
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