Computing Depreciation and Accounting for a Change of Estimate

In January of Year $1,$ Rankine Company paid $$17,000,000$ for land and a building. An appraisal estimated that the land had a fair value of $$5,000,000$ and the building was worth $$12,000,000.$ Rankine estimated that the useful life of the building was $30$ years, with no residual value.

a$.$ Calculate annual depreciation expense using the straight$-$line method.

$9$

b$.$ Calculate depreciation for Year $1$ and Year $2$ using the double$-$declining$-$balance method.

Do not round until your final answer. Round answer to the nearest whole number.

Year $1$$ $$

Year $2$$ $$

c$.$ Assume that in Year $3,$ Rankine changed its estimate of the useful life of the building to $25$ years. If the company is using the double$-$declining$-$balance method of depreciation, what amount of depreciation expense would Rankine record in Year $3?$

Do not round untilyour final answer. Round answer to the nearest whole number.

$$909,389$