Property, Plant, and Equipment Cost; Depreciation Methods Biskey Construction negotiates a lump-sum purchase of several assets from a company that is out of business. The purchase is completed on January 1, 2018, at a total cash price of $1,575,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $816,000; land, $578,000; land improvements, $85,000; and vehicles, $221,000. 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. Prepare the journal entry to record the purchase. 2. Compute the depreciation expense for 2018 on the building using the straight-line method, assuming a 15-year life and a $51,300 salvage value. 3. Compute the depreciation expense for 2018 on the land improvements assuming a five-year life and double-declining-balance depreciation. 4. Defend or refute this statement: Accelerated depreciation results in payment of less taxes over the asset's life. Accounting for Natural Resou