Answer:
the yearly depreciation expenses are $ 1, 144,571.43
Explanation:
First determine the Cost of the PPE
in terms of IAS 16, the cost of a PPE item includes the Purchase Price and any direct costs related to placing the asset in the condition and location intended for use by management.
<u>Cost of the PPE item</u>
Purchase Price $ 5,000,000
<em>Add</em> Delivery and Installation Costs $12,000
<em>Add</em> Building Costs $ 3,000,000
Total Cost $8,012,000
Then Calculate the Depreciation
Depreciation on Straight Line = Cost/Useful Life
= $8,012,000 / 7 years
= $ 1, 144,571.43