On March 31, 2024, Susquehanna Insurance purchased an office building for $14,700,000. Based on their relative...

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On March 31, 2024, Susquehanna Insurance purchased an office building for $14,700,000. 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 $1,290,000 and $790,000, 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 25 5% of cost Furniture and fixtures 20 5% of cost Office equipment 10 $ 39,000 Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What book values would be reported in the December 31, 2025, balance sheet (including land)? Book values on December 31, 2025: Land Building Furniture and fixtures Office equipment On March 31, 2024, Susquehanna Insurance purchased an office building for $14,700,000. 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 $1,290,000 and $790,000, 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 25 5% of cost Furniture and fixtures 20 5% of cost Office equipment 10 $ 39,000 Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What book values would be reported in the December 31, 2025, balance sheet (including land)? Book values on December 31, 2025: Land Building Furniture and fixtures Office equipment

Answer rating: 100% (QA)

Required 1 Depreciation Calculation for the years ended December 31 2024 and 2025 Depreciation Expense for Building Cost of Building 2 3 14 700 000 9 ... View the full answer