Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash...
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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, $476,850; land, $243,100; land improvements, $74,800; and four vehicles, $140,250. 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 $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. Required information Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Total Appraised Value $ 0 Percent of Total Appraised Value X % X % X % % 0% X X < Required 1A Total cost of Apportioned Acquisition Cost $ Required 1B > Required information Journal entry worksheet < 1 Record the costs of lump-sum purchase. Note: Enter debits before credits. Date Jan 01 Record entry General Journal Clear entry bebit Credit View general journal 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 $30,00 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 Required 3 Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30,000 salvage value. (Round your answer to the nearest whole dollar.) Depreciation expense on building < Required 1B Required 3 > Complete this question by entering your answers in the tabs below. Required 3 Required 1A Required 1B Required 2 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 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, $476,850; land, $243,100; land improvements, $74,800; and four vehicles, $140,250. 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life? is tax payment less under accelerated depreciation? 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, $476,850; land, $243,100; land improvements, $74,800; and four vehicles, $140,250. 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 $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. Required information Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Total Appraised Value $ 0 Percent of Total Appraised Value X % X % X % % 0% X X < Required 1A Total cost of Apportioned Acquisition Cost $ Required 1B > Required information Journal entry worksheet < 1 Record the costs of lump-sum purchase. Note: Enter debits before credits. Date Jan 01 Record entry General Journal Clear entry bebit Credit View general journal 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 $30,00 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 Required 3 Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30,000 salvage value. (Round your answer to the nearest whole dollar.) Depreciation expense on building < Required 1B Required 3 > Complete this question by entering your answers in the tabs below. Required 3 Required 1A Required 1B Required 2 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 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, $476,850; land, $243,100; land improvements, $74,800; and four vehicles, $140,250. 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life? is tax payment less under accelerated depreciation?
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SOLUTION 1a To allocate the lumpsum purchase price to the separate assets purchased we can use the r... View the full answer
Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild
Posted Date:
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