1. Best Ltd purchased a new building on a prime central business district site for $7 000 000. During the acquisition process, the following costs were further incurred:

   • Stamp duty: $ 700 000
   • Internal refurbishment costs to the building required to be made before use: $ 300 000
   • Cost of renovating the parking bays located in 100 metres away from the building: $400 000

   The useful life of the building is expected to be 25 years. The residual value of the building at that time is estimated to be $ 700 000. The benefits from owning the land and building are expected to be derived evenly. What is the appropriate annual depreciation charge?

   		$224 000
   		$308 000
   		$280 000
   		$292 000