Mandall Ltd. constructed a warehouse for £280,000. Mandall estimates that the warehouse has a useful life of 20 years and no residual value. Construction records indicate that £40,000 of the cost of the warehouse relates to its heating, ventilation, and air conditioning (HVAC) system, which has an estimated useful life of only 8 years. Compute the fi rst year of depreciation expense using straightline component depreciation.