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At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of purchase price was allocated to the building. Depreciation
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 25-year useful life, and $1 million residual value. In 2018, the estimated useful life and residual value were changed to 20 years and $500,000, respectively. What is depreciation on the building for 2018?
A) $463,667
B) $436,667
C) $643,667
D) $636,667
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