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Timberly Construction makes a lumpsum purchase of several assets on January at a total cash price of $ The estimated market values of the purchased assets are building, $; land, $; land improvements, $; and four vehicles, $
Required:
a Allocate the lumpsum purchase price to the separate assets purchased.
b Prepare the journal entry to record the purchase.
Compute the firstyear depreciation expense on the building using the straightline method, assuming a year life and a $ salvage value.
Compute the firstyear depreciation expense on the land improvements assuming a fiveyear life and doubledecliningbalance depreciation.
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