7. Salem Company hired Kirk Construction to construct an office building for 11,200,000 on land costing 2,800,000, which Salem Company owned. The building was complete and ready to be used on January 1, 2020 and it has a useful life of 40 years. The price of the building included land improvements costing 845,000 and property costing 1,050,000. The useful lives of the land improvements and the personal property are 10 years and 5 years, respectively. Salem Company uses component depreciation, and the company uses straight-line depreciation for other similar assets. What total amount of depreciation expense would Salem Company report on its income statement for the year ended December 31, 2020? (2 points) 469,000 527,125 596.750 526.750