In: Accounting
On March 31, 2021, Susquehanna Insurance purchased an office
building for $12,300,000. 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 $1,370,000
and $870,000, 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 | 30 | 10% of cost |
Furniture and fixtures | 10 | 10% of cost |
Office equipment | 5 | $47,000 |
Required:
Calculate depreciation for 2021 and 2022. (Do not round
intermediate calculations.)
depreciation | ||
2021 | 2022 | |
building- | ||
furniture- | ||
office equipment - |