Timberly 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, 2013, at a total cash price of $830,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $499,800; land, $294,000; land improvements, $39,200; and four vehicles, $147,000. The companys fiscal year ends on December 31

1. Compute the depreciation expense for year 2013 on the building using the straight-line method, assuming a 15-year life and a $29,000 salvage value.

2. Compute the depreciation expense for year 2013 on the land improvements assuming a five-year life and double-declining-balance depreciation.

*please show steps and calculations