Item $1$

On March $31,2024,$ Susquehanna Insurance purchased an office building for $$14,100,000.$ Based on their relative fair values, one$-$third of the purchase price was allocated to the land and two$-$thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $$1,270,000$ and $$770,000,$ respectively. The company uses the straight$-$line method to depreciate its buildings and the double$-$declining$-$balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows:

Service Life Residual Value

Building $3010\%$ of cost

Furniture and fixtures $1010\%$ of cost

Office equipment $5$ $ $37,000$

Required:

Calculate depreciation for the years ended December $31,2024$ and $2025.$

What book values would be reported in the December $31,2025,$ balance sheet $($including land$)?$