Nagy Company makes a lump$-$sum purchase of several assets on January $1$ at a total cash price of $$1,800,000.$ The estimated market values of the purchased assets are building, $$890,000$; land, $$427,200$; land improvements, $$249,200$; and five trucks, $$213,600.$

Required

Allocate the lump$-$sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase.

Compute the first$-$year depreciation expense on the building using the straight$-$line method, assuming a $12-$year life and a $$120,000$ salvage value.

Compute the first$-$year depreciation expense on the land improvements assuming a $10-$year life and double$-$declining$-$balance depreciation.