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[The following information applies to the questions displayed below.] Xavier Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2021, at a total cash price of $820,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $448,800; land, $271,150; land improvements, $65,450; and four vehicles, $149,600. The companys financial year ends on December 31.

3. Compute the depreciation expense for year 2021 on the land improvements assuming a five-year life and double-declining-balance depreciation.