Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Logic Co

Logic Co

Accounting

Logic Co. recently negotiated a lump-sum purchase of several assets from a company that was going out of business. The purchase was completed on March 1, 2020, at a total cash price of $1,340,000 and included a building, land, certain land improvements, and 12 vehicles. The estimated market values of the assets were building, $619,200; land, $518,400; land improvements, $86,400; and vehicles, $216,000. The company’s fiscal year ends on December 31.

Required:
1.
 Complete the following schedule to allocate the lump-sum purchase price to the separate assets that were purchased. Also present the journal entry to record the purchase.

 



2. Calculate the 2020 depreciation expense on the building using the straight-line method to the nearest whole month, assuming a 15-year life and a $20,000 residual value.



3. Calculate the 2020 depreciation expense on the land improvements assuming a five-year life, $10,000 residual, and double-declining-balance depreciation calculated to the nearest whole month.

Option 1

Low Cost Option
Download this past answer in few clicks

2.84 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE