Page 219Anglesea Ltd constructed a building in 2018 at a cost of $960 000. The building was expected to have a useful life of 25 years after which time it would be demolished at an expected demolition cost of $100 000. Being on the coast, the building was subject to wild winds at times. At the end of the 2022 financial year the roof of the building was blown away and a replacement was constructed at a cost of $200 000. It was predicted that by replacing the building’s roof its expected useful life would be extended a further 25 years after the end of the 2022 financial year.

REQUIRED

Calculate the depreciation cost for the 2021, 2022 and 2023 financial years