Nagy Company negotiates a lump-sum purchase of several assets from contractor who is relocating. The purchase is completed on January 1, 2015, at a total cash price of $1, 800.000 for a building, land, land, improvement, and five trucks. The estimated market values of the assets are building, $890.000: land, $427.200, land improvement, $249.200; and five trucks, $213.600. The company's fiscal year ends on December 31. Required 1. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased (round percent's to the nearest 1%). Prepare the journal entry to record the purchase. 2. Compute the depreciation expense for year 2015 on the building using the straight-line method assuming a 12-year life and a $120,000 salvage value. 3. Compute depreciation expense for year 2015 on land improvement assuming a 10-year life and double-declining-balance depreciation. Analysis Component 4. Defend or refute this statement: Accelerated depreciation result in payment of more taxes over the asset's life. On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five-year life and an estimated $30,000 salvage values. Management estimates the machine will 1, 470.000 of product during its life. Actual production IS FOLLOWA: 355, 600 IS 1ST year, 320, 400 in 2nd year