Exercise $3(12$ points$)$

Company CALEB Ltd$.$ purchased the following long$-$term assets during $20$X$1$:

Building $($seat of the company$)$: purchase price $1200000$ EUR, useful life $25$ years, straight$-$line depreciation method, salvage value $300000$ EUR, purchased on November $12$ th $201,$

Production machine $($used in company's factory$)$: purchase price $44500$ EUR, installation fee $500$EUR, training of employees on how to use the machine $1000$ EUR. Useful life $15$ years, units$-$of$-$activity method, estimated total capacity claimed by producer of the machine is $300000$ pieces of products, no salvage value, purchased on December $12$th $20$X$1.$

Production machine made the following number of products in $201$ and $202$ :

$1000$ pieces of products in $20$X$1,$

$15000$ pieces of products in $202.$

Calculate depreciation expense of the building and the production machine for $201$ and $202.$ In compliance with accounting policy, the company starts to depreciate long$-$term assets from the beginning of the next month after acquisition. Do not use any rounding during calculations.

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