Required information

Problem $8-1$A $($Algo$)$ Plant asset costs; depreciation methods LO C$1,$ P$1$

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Timberly Construction makes a lump$-$sum purchase of several assets on January $1$ at a total cash price of $$800,000.$ The

estimated market values of the purchased assets are building, $$465,300$; land, $$277,200$; land improvements, $$49,500$;

and four vehicles, $$198,000.$

Problem $8-1$A $($Algo$)$ Part $1-3$

Required:

$1-$a$.$ Allocate the lump$-$sum purchase price to the separate assets purchased.

$1-$b$.$ Prepare the journal entry to record the purchase.

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.

Compute the first$-$year depreciation expense on the land improvements assuming a five$-$year life and double$-$declining$-$balance

depreciation.

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Required $1A$

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