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Company Mazula is a large computer distributer founded on Jan 1st 2018. During 2018 and 2019 the Company had the following transactions: 1. Building -

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Company Mazula is a large computer distributer founded on Jan 1st 2018. During 2018 and 2019 the Company had the following transactions: 1. Building - On April 1st 2018 the Company acquired a building for $600,000. The Company used extra building rights and built a new floor at a cost of $80,000. Assume the new floor completed on the purchase date. The building is depreciated using the Straight Line Method, its useful life is 30 years. The building (including the new floor) has a salvage value of $50,000. 2. Office furniture - on January 15 2018 the company purchased office furniture for $30,000. The Company also paid $1,000 for the delivery of the furniture. The Company uses the Double Declining depreciation method to depreciate the furniture. The salvage value is $8,000. The Company expects that it will use the furniture for 6 years. The Company sold the furniture at Dec 31 2019 for $22,000. Required: A. What are the depreciation expenses for 2018 and 2019 for each of the assets above? B. What is the net balance of PP&E on Dec 31st 2018? C. What is the company's capital gain/loss on the sale of the furniture? D. Assume that for tax purposes the Company depreciates the building to zero for a period of 20 years, and that the statutory tax rate is 20%. What will be the deferred tax liability in 2018 and 2019 year-end

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