You can use Problem 1A as a guide how to set up the Problem Problem 8-13 Plant asset costs; depreciation methods C1 P1 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 1. Allocate the lump-sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. 2. 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. Check (2) $65,000 3. Compute the first-year depreciation expense on the land improvements assuming a 10-year life and double-declining-balance depreciation. (3) $50,400 Analysis Component 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life