Capital Expenditures, Depreciation, and Disposal Merton Company purchased a building on Janusry 1, 2016, at a cost of $364,000. Merton estimatedthat its ite would be 25 years and its residual value would be $14,000. company made several expendtures related to the building. The entire building was painted and floors were refinished at a cost of $21,000. A federal agency required Merton to install additional poillution control In 2018, Merton aftered ts corporate strategy dramaticall. The company sold the building on Apri 1, 2018, for $392,000 in cash and relocated all operations to another state Required 1. Determine the depreiation that should be on the income statement for 2016 and 2017 devices in the building at a cost of $42,000. With the new devices,Merton belileved it was possible to extend the life of the building by six years 2016 2017