air Conect . ed ir On cal year ends on December 31, struction negotiates a lumpsum purchase of several assets from a company that is going PROBLEM SET A herly The purchase is completed on January 1, 2015, at a total cash price of $900,000 for a ado land, land improvem of business improvements, and four vehicles. The estimated market values of the assets are build million Is800; land, $297600; land improvements, $28,800, and four vehicles, $124,800. The companys . Problem 10-1A Plant asset costs; depreciation methods ired Requi C1 P1 Denare a table to allocate lump the the -sum purchase price to separate assets purchased (round per- cents to the nearest 1%)Prepare the journal entry to record the purchase. 4. Compute the depreciation expense for year 2015 on the using the -line method, as -000 building straightCheck 2) $30 suming a 15-year life and a $27000 salvage value. 3. Compute the depreciation expense for year 2015 on the land improvements assuming a five-year life and double-declining-balance depreciation. 1 (, (3) $ 10,800 Analysis Component 4. Defend or refute this statement: Accelerated depreciation results in payment of less taxes over the as- sets life.