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At the beginning of Year 1, a company acquired a manufacturing facility for $13.6 million. $10.6 million of the purchase price was allocated to the
At the beginning of Year 1, a company acquired a manufacturing facility for $13.6 million. $10.6 million of the purchase price was allocated to the building. Depreciation for Year 1 and Year 2 was calculated using the straight-line method, a 25-year useful life, and a $2.6 million residual value. In Year 3, the estimates of useful life and residual value were changed to 20 total years and $660,000, respectively.
What is depreciation on the building for Year 3?
Note: Enter your answer in whole dollars rounded to the nearest whole number.
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