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5 years The Property Co Ltd have recently purchased a building at a cost of 3,750,000. They have estimated that this will have a
5 years The Property Co Ltd have recently purchased a building at a cost of 3,750,000. They have estimated that this will have a useful life of 25 and a residual value of 1,100,000. They have not yet decided whether to depreciate this using the straight line method or the reducing balance method at 6% per annum. The Property Co Ltd have a policy of charging a full year's depreciation in the year of purchase and none in the year of sale. What would be the value of the depreciation for the first TWO years under the straight line method? What would be the value of the depreciation for the first TWO years under the reducing balance method? (Enter the values with no sign, comma or decimal places)
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