On March 31, 2021, Susquehanna Insurance purchased an office building for $11,100,000. Based on their...
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On March 31, 2021, Susquehanna Insurance purchased an office building for $11,100,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,330,000 and $830,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 25 20 10 Residual Value 5% of cost 5% of cost $43,000 Required: Calculate depreciation for 2021 and 2022. (Do not round intermediate calculations.) Depreciation 2021 2022 Building Furniture and fixtures Office equipment
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