Ch. 10 - LO-P1: Required - Problem 10-14 i Required Information 4.5 Problem 10-1A (Algo) Plant asset costs; depreciation methods LO C1, P1 points [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. The estimated market values of the purchased assets are building, $500,000; land, $300,000; land improvements, $40,000; Book and four vehicles, $160,000. Print Problem 10-1A (Algo) Part 1-3 n References 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 1A Required 18 Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total Estimated Percent of Total Total cost of Apportioned cost Market Value Acquisition Cost Building S 600,000 $ 840,000 .and 300,000 $ 840,000 Land improvements 40,000 9% $ 840,000 Vehicles 160.0 00 $ 840,000 Total S 1,000,000 09% $ Required 1A Required 1B >\fRequired Information Problem 10-1A (Algo) Plant asset costs; depreciation methods LO C1, P1 [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. The estimated market values of the purchased assets are building, $500,000: land, $300,000: land improvements, $40,000; and four vehicles, $160,000. Problem 10-1A (Algo) Part 1-3 Required: 1-0. 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 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 $29,000 salvage value. (Round your answer to the nearest whole dollar,) Depreciation expense on building \fProblem 10-2A Depreciation methods M4 P1 A machine costing $2 57,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1' The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in Year 1, 124,600 in Year 2, 121,800 in Year 3, and 15.200 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis difference was not predicted. Nora: The machine cannot be depreciated below its estimated salvage value. Page 3 84 Required Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Year Straight-Llne Unlts-of-Productlon Double-Declining-Balance Check Year 4: unitseofrproduction depreciation S4300; DDB depreciation' $12'i 87 :1