Question: On March 3 1 , 2 0 2 4 , Susquehanna Insurance purchased an office building for $ 1 1 , 7 0 0 ,

On March 31,2024, Susquehanna Insurance purchased an office building for $11,700,000. 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 $1,350,000 and $850,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows:
Service LifeResidual ValueBuilding255%of costFurniture and fixtures105%of costOffice equipment5$ 45,000
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)?

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