question archive On March 31, 2016, Susquehanna Insurance purchased an office building for $13,200,000
On March 31, 2016, Susquehanna Insurance purchased an office building for $13,200,000
Subject:AccountingPrice: Bought3
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On March 31, 2016, Susquehanna Insurance purchased an office building for $13,200,000. 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 $1,400,000 and $900,000, 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: |
| Service Life |
Residual Value |
|
| Building | 25 | 5% of cost |
| Furniture and fixtures | 10 | 5% of cost |
| Office equipment | 5 | $50,000 |
| Required: |
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Calculate depreciation for 2016 and 2017. (Do not round intermediate calculations.) Depreciation 2016 2017 Building Furniture and Fixtures Office Equipment |
