Mooney Ltd. completed construction of an office building for £2,400,000 on December 31, 2016. 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 2017 using component depreciation and the straight line method.