Problem 9-8A PPE costs; partial year's depreciation; alternative methods LO1,2,3Logic Co. recently negotiated a lump-sum...
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Problem A PPE costs; partial year's depreciation; alternative methods LOLogic Co recently negotiated a lumpsum purchase of several assets from a company that was going out of business. The purchase was completed on March at a total cash price of $ and Included a building, land, certain land Improvements, and vehicles. The estimated market values of the assets were building, $; land, $; land improvements, $; and vehicles, $ The company's fiscal year ends on December Required: Complete the following schedule to allocate the lumpsum purchase price to the separate assets that were purchased. Also present the journal entry to record the purchaseMarket ValuePercentage ofTotalApportionedCOStBuildingLandLand improvementsVehiclesTotal Calculate the depreciation expense on the building using the straightline method to the nearest whole month, assuming a year life and a $ residual valueDepreciation expense Calculate the depreciation expense on the land Improvements assuming a fiveyear life, $ residual, and doubledecliningbalance depreciation calculated to the nearest whole month.Depreciation expense
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