Mooney Company completed construction of an office building for $2,400,000 on December 31, 2010. The company estimated that the building would have a residual value of $0 and a useful life of 40 years. A more detailed review of the expenditures related to the building indicates that $300,000 of the total cost was used for personal property and $180,000 for land improvements. The personal property has a depreciable life of 5 years and land improvements have a depreciable life of 10 years.

Instructions
Compute depreciation expense for 2011 using component depreciation and the straight-line method.