Compute the depreciation expense for this equipment at December 31, 2012. IFRS11-8 Tan Chin Company purchases a building for $11,300,000 on January 2, 2012. An engineer’s report shows that of the total purchase price, $11,000,000 should be allocated to the building (with a 40-year life), $150,000 to 15-year property, and $150,000 to 5-year property. Compute depreciation expense for 2012 using component depreciation.