Item$3$

Item $3$

Logic Co$.$ recently negotiated a lump$-$sum purchase of several assets from a company that was going out of business. The purchase was completed on March $1,2023,$ at a total cash price of $$1,410,000$ and included a building, land, certain land improvements, and $15$ vehicles. The estimated market values of the assets were building, $$608,000$; land, $$623,200$; land improvements, $$91,200$; and vehicles, $$197,600.$ The company$$s fiscal year ends on December $31.$

Required:

$1.$ Complete the following schedule to allocate the lump$-$sum purchase price to the separate assets that were purchased. Also present the journal entry to record the purchase.

$2.$ Calculate the $2023$ depreciation expense on the building using the straight$-$line method to the nearest whole month, assuming a $15-$year life and a $$24,000$ residual value.

$3.$ Calculate the $2023$ depreciation expense on the land improvements assuming a five$-$year life, $$12,000$ residual, and double$-$declining$-$balance depreciation calculated to the nearest whole month.