I need help in this exercise plz.The book is financial and managerial accounting

Question

I need help in this exercise plz.The book is financial and managerial accounting wild, 6e
Chapter 8 problem 8-1A

Problem 8-1A 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, 2015, 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, $481,000; land, $259,000; land improvements, $64,750; and four vehicles, $120,250. The company's fiscal year ends on December 31. Required: 1.1 Prepare a table to allocate the lump-sum purchase price to the separate assets purchased Allocation of total cost Appraised Value Percent of Total Appraised Total cost of Acquisition Apportioned Cost Value Building Land Land improvements Vehicles Total

Explanation / Answer

percent of total Apportioned 1.1 Appraised total cost of cost Allocation of total cost Value Appraised * Acquistion Value Building 481,000 52.00% * 810,000 421200 land 259,000 28.00% * 810,000 226800 land improvements 64,750 7.00% * 810,000 56700 Vehicles 120,250 13.00% * 810,000 105300 total 925,000 810000 journal entry for lumpsum purchase Date General Journal Debit Credit 1-Jan Building 421200 land 226800 land improvements 56700 Vehicles 105300 Cash 810000 2) Depreciation expense on Building 78440 (421,200-29000)/15 78440 3) Depreciation expense on land improvements 22,680 (56700*40%) 22680

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