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Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purc
Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3 Prepare the
AM h e land Improvements assuming a five-year life and double-declininga depreciation. Complete this question by entering you
mr. companys fiscal year ends on December 31. J. Idhu, 331,900. Ind improvements, 556.10, and tour utred: Prepare a table to
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Answer #1

1(a)

Allocation of Total Cost Appraised Value %of total appraised value Total cost of acquisition Acquisition Cost
Building 476850 51% 800000 408000
Land 317900 34% 800000 272000
Land Improvements 56100 6% 800000 48000
Vehicles 84150 9% 800000 72000
Total 935000 100% 800000

1(b)Journal Eutrien Dali Practiculars bebit LAOLA Jan. 1 408000 alm. 2/2010 Building Alc Land All Land auprovant Au Vehicles All

1(c)

110 Claulalian of Depreciation and Building Useful life of the Asset 15 yeam. a Salvage Value = 31,000 Amount of seph to be c

1(d)

@ Claulation of Depreciation an Land impruments Cost of Land aimpronandhand 48000 Useful life 5 year. :. Arant of Depin to th

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