AAA Corporation constructed a new building. The detail cost and other information is as below. The depreciation method is the straight-line method.

[Whole building]

Total Cost: $20,000,000, Useful Life: 40 yrs, Residual Value: $0

[Component - Surfaces]

Cost: 5% of total cost, Useful Life: 10 years

[Component - HVAC system]

Cost: 15% of total cost, Useful Life: 20 years

Please answer the following questions under IFRS.

[1] What is the annual depreciation amount using the component depreciation?

[2] Prepare the journal entry to account for the depreciation in the first year.

[3] What is the balance sheet presentation of this building in the first year?