Niemeyer Company negotiates a lump-sum purchase of several assets from a contractor who is relo¬ cating. The purchase is completed on January 1, 2005, at a total cash price of $1,610,000 for a build¬ ing, land, land improvements, and six trucks. The estimated market values of the assets are building, $784,800; land, $540,640; land improvements, $226,720; and three trucks, $191,840. The company’s fiscal year ends on December 31.

Required 1. Prepare a table to allocate the lump-sum purchase price percents to the nearest 1%). Prepare the journal entry to 2. Compute the depreciation expense for year 2005 on the assuming a 12-year life and a $100,500 salvage value.
3. Compute the depreciation expense for year 2005 on the life and double-declining-balance depreciation.

Analysis Component 4.Defend or refute this statement: Accelerated depreciation results in payment of more taxes over the asset’s life.