Allocation of Total Cost | Appraised Value | Percentage | Total cost of Acquition | Apportioned Cost |
Building | $508,800 | 53.00% | $900,000 | $477,000 |
Land | $297,600 | 31.00% | $900,000 | $279,000 |
Land Improvement | $28,800 | 3.00% | $900,000 | $27,000 |
Vehicles | $124,800 | 13.00% | $900,000 | $117,000 |
$960,000 | $900,000 | |||
Cost | $477,000 | |||
Salvage value | $27,000 | |||
Depreciable cost | $450,000 | |||
Depreciable life | 15 | |||
yearly Depreciation Expense | $30,000 | |||
($450,000/15 years) | ||||
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, 2019, at a total cash price of $900,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $ 508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. The company's fiscal year ends on December 31. Using the Timberly Construction table above, compute the yearly depreciation...
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, 2019, at a total cash price of $900,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. The company's fiscal year ends on December 31. Using the Timberly Construction table above, compute the yearly depreciation expense...
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 $900,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. The company's fiscal year ends on December 31. Required: 1-a. Prepare a table to allocate the lump-sum purchase price...
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, 2019, at a total cash price of $900,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building. $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. The company's fiscal year ends on December 31. B Question 1 40 pts Complete the following table to allocate...
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 $830,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $494,000; land, $323,000; land improvements, $38,000; and four vehicles, $95,000. The company’s fiscal year ends on December 31. Required: 1-a. Prepare a table to allocate the lump-sum purchase price...
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 $810,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $446,200; land, $320,100; land improvements, $48,500; and four vehicles, $155,200. The company’s fiscal year ends on December 31. Required: 1-a. Prepare a table to allocate the lump-sum purchase price...
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 $800,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $482,500; land, $308,800; land improvements, $38,600; and four vehicles, $135,100. The company’s fiscal year ends on December 31. Required: 1-a. Prepare a table to allocate the lump-sum purchase price...
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 negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2015, at a total cash price of $800,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $472,800; land, $315,200; land improvements, $68,950; and four vehicles, $128,050. The company’s fiscal year ends on December 31. 1.Prepare the journal entry to record the purchase. 2. Compute the...
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 $800,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building. $444,000; land, $259,000 land improvements, $37,000, and four vehicles, $185,000. The company's fiscal year ends on December 31 Required: 1-a. Prepare a table to allocate the lump sum...