Financial and Managerial Accounting (Looseleaf) (Custom Package)
6th Edition
ISBN: 9781259754883
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 8, Problem 1PSA
PROBLEM SET A
Problem 8−1A
Plant asset costs;
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 $900,000 for a building, land, land improvement, and four vehicles. The estimated market values of the assets are building, $508,800; land, $297,600; land improvement, $28,800; and four vehicles, $124,800. The company’s fiscal year ends on December 31.
Required
- Prepare a table to allocate the lump-sum purchase price to the separate assets purchased (round percents to the nearest 1%). Prepare the
journal entry to record the purchase. - Compute the depreciation expense for year 2015 on the building using the straight-line method, assuming a 15-year life and a $27,000 salvage value.
- Compute the depreciation expense for year 2015 on the land improvements assuming a five-year life and double-declining-balance depreciation.
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Problem 8-1A (Algo) 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 $800,000. The
estimated market values of the purchased assets are building, $465,300; land, $277,200; land improvements, $49,500;
and four vehicles, $198,000.
Problem 8-1A (Algo) Part 1-3
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 $30,000
salvage value.
3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance
depreciation.
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B
Required 2 Required 3…
Check my w
Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1
Rodriguez Company pays $405,405 for real estate with land, land improvements, and a building. Land is appraised at $243,000, land
improvements are appraised at $108.000; and the building is appraised at $189,000.
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
Comptete this question by entering your answers in the tabs below.
Required 1
Required 2
Allocate the total cost among the three assets. (Round your "Apportioned Cost" answens to 2 decimal places.)
Appraised
Value
Percent of Total
Appraised
Value
Total Cost of
Acquisition
- Apportioned
Cost
243.000
108 000
Land
Land improvements
Required information
Problem 8-1A (Algo) 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 $830,000. The
estimated market values of the purchased assets are building, $497,250; land, $292,500; land improvements, $68,250;
and four vehicles, $117,000.
Problem 8-1A (Algo) Part 4
es
4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life?
Is tax payment less under accelerated depreciation?
Yes
No
Chapter 8 Solutions
Financial and Managerial Accounting (Looseleaf) (Custom Package)
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - A company purchased machinery for $10,800,000 on...Ch. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQ
Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - Prob. 21DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Prob. 14QSCh. 8 - Prob. 15QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Prob. 24ECh. 8 - Prob. 25ECh. 8 - PROBLEM SET A Problem 81A Plant asset costs;...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Prob. 5BTNCh. 8 - Prob. 6BTNCh. 8 - Prob. 7BTNCh. 8 - GOOGLE
Google Inc. CONSOLIDATED BALANCE SHEETS (In...Ch. 8 - Prob. 9BTN
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