Accounting for Equipment and Asset Purchases in Business

ACC 101 - L 21 - HW Kegler Bowling buys scorekeeping equipment with an invoice cost of $195,000. The electrical work required for the installation costs $20,475. Additional costs are $4,095 for delivery and $14,050 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,890. What is the total recorded cost of the scorekeeping equipment? Required information [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 $840,000. The estimated market values of the purchased assets are building, $494,000; land, $285,000; land improvements, $66,500; and four vehicles, $104,500. 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 $31,000 salvage value. 3.Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.