Answer:
2018:
building: 296,400
Furniture and fixtures: 270,000
Office Equipment: <u> 340,000 </u>
Total: 906,400
Explanation:
<em>11,700,000 1/3 to land:</em> 3,900,000
<em>11,700,000 2/3 to building:</em> 7,800,000
Office Equipment: <u> 204,000 </u>
Total: 11,904,000
<u>Building depreciation: </u>
(historic cost - salvage value)/useful life
(7,800,000 - 7,800,000 x 5%)/25 = <em>296,400</em>
As this is straight-line depreciation will be constant for both years.
Furniture and fixtures: double-declining
the assets depreciate at a rate double of straight line of the carrying value
carring value: 2/useful life
2018: 1,350,000 x 1/10 x 2 = 270,000
2019: (1,350,000-270,000) x 1/10 x 2 = 216,000
Office Equipment: double-declining
2018: 850,000 x 2/5 = 340,000
2019: (850,000 - 340,000) x 2/5 = 204,000
