1) Allocation
Allocation of total Cost | Appraised value | Percent of total appraised value | * | Total cost of acquisition | Apportioned cost |
Building | 455400 | 46% | * | 840000 | 386400 |
Land | 306900 | 31% | * | 840000 | 260400 |
Land improvements | 69300 | 7% | * | 840000 | 58800 |
Vehicles | 158400 | 16% | * | 840000 | 134400 |
Total | 990000 | 100% | 840000 |
2) Journal entry
Date | account and explanation | Debit | Credit |
Building | 386400 | ||
Land | 260400 | ||
Land improvement | 58800 | ||
Vehicles | 134400 | ||
Cash | 840000 | ||
(To record purchase) |
3a) Depreciation on building = (386400-31000/15) = 23693
3b) Depreciation on land improvement = 58800*40% = 23520
4) No
Required Information Problem 10-1A Plant asset costs; depreciation methods LO C1, P1 [The following information applies...
Problem 10-1A Plant asset costs; depreciation methods LO C1, P1 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 $820,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $524,700; land, $267,300; land improvements, $69,300; and four vehicles, $128,700. The company's fiscal year ends on December 31. Required:...
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! 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...
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, $492,900; land, $306,900; lond Improvements, $65,100; and four vehicles, $65,100. 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 $31,000...
Having trouble to solve this, please so work to understand better. Thank you 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 $900,000. The estimated market values of the purchased assets are building. $508,800; land, $297600 land improvements, $28,800 and four vehicles, $124,800 Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased 1-b. Prepare the journal entry...
Problems 0 Saved Help 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. equired: a. Allocate the lump-sum purchase price to the separate assets purchased. -b. Prepare the journal entry to record the purchase. - Compute the first-year...
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...
prepare journal entry to record purchase, depreciation expense on building, depreciation expense on land improvements Problem 10-1A Plant asset costs, depreclatlon methods LO c1, P1 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 $820.000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building. $465,500: land, $275,500: land improvements,...
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...
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