On March 31, 2016, Susquehanna Insurance purchased an office building for $10,200,000. 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 $1,300,000 and $800,000, 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 $40,000
Calculate depreciation for 2016 and 2017.

2016 = $628,800

2017 = $903,000

Explanation:

Step 1 : Determine the Cost of the Assets

Land = 1/3 x $10,200,000 = $3,400,000

Buildings = 2/3 x $10,200,000 = $6,800,000

Furniture and fixtures = $1,300,000

Office equipment = $800,000

Step 2 : Determine the Depreciation expenses for individual assets

Land

Land is not depreciated we call it a non-depreciable asset. Hence no depreciation charge for this asset.

Buildings

Straight line method is used to depreciate Buildings. Straight line method charges a fixed amount of depreciation.

Depreciation Expense = (Cost - Residual Value) ÷ Useful life

Annual depreciation = ($6,800,000 - $340,000) ÷ 25 = $258,400

2016 :

Machine is only available for use from April to December, hence 9 months depreciation not full year depreciation.

Depreciation expense = $258,400 x 9/12 = $193,800

2017 :

A full year`s depreciation can be charged

Depreciation expense = $258,400

Furniture and fixtures

The double-declining-balance method is being used.

Deprecation expense = 2 x SLDP x BVSLDP

where,

SLDP = 100 ÷ 10 = 10%

2016 :

Annual Depreciation expense = 2 x $1,300,000 x 10% = $260,000

Allow for only 9 months depreciation, hence depreciation expense will be :

Depreciation expense = $260,000 x 9/12 = $195,000

2017 :

Provide for a full year`s depreciation.

Annual Depreciation expense = 2 x ($1,300,000 - $195,000) x 10% = $221,000

Office equipment

The double-declining-balance method is being used.

Deprecation expense = 2 x SLDP x BVSLDP

where,

SLDP = 100 ÷ 5 = 20%

2016 :

Annual Depreciation expense = 2 x $800,000 x 20% = $320,000

Allow for only 9 months depreciation, hence depreciation expense will be :

Depreciation expense = $320,000 x 9/12 = $240,000

2017 :

Provide for a full year`s depreciation.

Annual Depreciation expense = 2 x ($1,300,000 - $240,000) x 20% = $424,000

Step 3 ; Calculate Total Depreciation

2016 :

Depreciation expense = $193,800 + $195,000 + $240,000 = $628,800

2017 :

Depreciation expense = $258,400 + $221,000 + $424,000 = $903,000

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

happy to

pls mark as brainliest