Homework Answers
No, Over the useful life of the asset taxes paid over will remain same under accelerated depreciation as compared to straight line depreciation. Under accelerated depreciation taxes will be lower in initial years when depreciation is high however, close to end of the life of the asset taxes will be made.
The basis of the tax is same under both the method that means total depreciation over the useful life will be equal to cost of asset i.e. 624,000
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Required information The following information applies to the questions displayed below.) Timberly Construction makes a lump...
Required information [The following information applies to the questions displayed below.) Timberly Construction makes a lump-sum...
Required information [The following information applies to the questions displayed below.) Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $850,000. The estimated market values of the purchased assets are building, $448,500; land, $273,000; land improvements, $78,000; and four vehicles, $175,500. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building...
Required information [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum...
Required information [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $460,000; land, $303,600; land improvements, $64,400; and four vehicles, $92,000. Pequired: -a. Allocate the lump-sum purchase price to the separate assets purchased. -b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash...
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, $429,750; land, $248,300; land improvements, $47,750; and four vehicles, $229,200. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $29,000...
! Required information The following information applies to the questions displayed below.] Timberly Construction makes a...
! Required information The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $506,150; land, $305,600; land improvements, $47,750; and four vehicles, $95,500 Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the...
Required information [The following information applies to the questions displayed below.) Timberly Construction makes a lump...
Required information [The following information applies to the questions displayed below.) Timberly Construction makes a lump sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $487,550; land, $288,550; land improvements, $59,700, and four vehicles, $159,200. Required: 1-o. Allocate the lump-sum purchase price to the separate assets purchased 1-b. Prepare the journal entry to record the purchase 2. Compute the first year depreciation expense on...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $534,600; land, $316,800; land improvements, $39,600; and four vehicles, $99,000. Allocate the lump-sum purchase price to the separate assets purchased. Appraised Value Percent of Total Appraised Value х Total cost of Acquisition Apportioned Cost % X Allocation of total cost Building Land Land improvements Vehicles Total % x х % %...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000.The estimated market values of the purchased assets are building, $427,800; land, $241,,800; land improvements, $37,200; and four vehicles, $223,200 Compute the first year depreciation expense on the land improvements assuming a five year and double declining balance depreciation Depreciation expense on land improvements?
Required Information Problem 10-1A Plant asset costs; depreciation methods LO C1, P1 [The following information applies...
Required Information Problem 10-1A Plant asset costs; depreciation methods LO C1, P1 [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. The estimated market values of the purchased assets are building, $455,400, land, $306,900, land Improvements, $69,300; and four vehicles, $158,400. Problem 10-1A Part 1-3 Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal...
Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out...
Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2017, at a total cash price of $850,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $471,750; land, $286,750; land improvements, $46,250; and four vehicles, $120,250. The company’s fiscal year ends on December 31. Required: 1-a. Prepare a table to allocate the lump-sum purchase price...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $534,600; land, $316,800; land improvements, $39,600; and four vehicles, $99,000. 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage...
Required information [The following information applies to the questions displayed below.) Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $850,000. The estimated market values of the purchased assets are building, $448,500; land, $273,000; land improvements, $78,000; and four vehicles, $175,500. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building...
Required information [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $460,000; land, $303,600; land improvements, $64,400; and four vehicles, $92,000. Pequired: -a. Allocate the lump-sum purchase price to the separate assets purchased. -b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building...
! Required information The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $506,150; land, $305,600; land improvements, $47,750; and four vehicles, $95,500 Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the...
Required information [The following information applies to the questions displayed below.) Timberly Construction makes a lump sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $487,550; land, $288,550; land improvements, $59,700, and four vehicles, $159,200. Required: 1-o. Allocate the lump-sum purchase price to the separate assets purchased 1-b. Prepare the journal entry to record the purchase 2. Compute the first year depreciation expense on...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $534,600; land, $316,800; land improvements, $39,600; and four vehicles, $99,000. Allocate the lump-sum purchase price to the separate assets purchased. Appraised Value Percent of Total Appraised Value х Total cost of Acquisition Apportioned Cost % X Allocation of total cost Building Land Land improvements Vehicles Total % x х % %...
Required Information Problem 10-1A Plant asset costs; depreciation methods LO C1, P1 [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. The estimated market values of the purchased assets are building, $455,400, land, $306,900, land Improvements, $69,300; and four vehicles, $158,400. Problem 10-1A Part 1-3 Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $534,600; land, $316,800; land improvements, $39,600; and four vehicles, $99,000. 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage...
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