Project Description:

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.
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