Calculate the depreciation expense on the building

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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 1,260,000 and included a building, land, certain land improvement, and 12 vehicles. The estimated market value of the assets were building, $652,800; land, $462,400; land improvement, $68,000; vehicles, $176,800. The company's fiscal year ends on December 31.

Question 1:  schedule to allocate the lump-um purchase price to the separate assets that were purchased. Also present the journal entry to record the purchase.

Question 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 $41,040 residual value.

Question 3:  Calculate the 2020 depreciation expense on land improvement assuming a 5 year life, $12,000 residual, and double-declining-balance calculated to the nearest whole month

Reference no: EM132462198

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