Computing Depreciation and Accounting for a Change of Estimate

In January, Rankine Company paid $

$1$

$0$

$,$

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$for land and a building. An appraisal estimated that the land had a fair value of $

$3$

$,$

$0$

$0$

$0$

$,$

$0$

$0$

$0$

$$and the building was worth $

$7$

$,$

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$.$

$$Rankine estimated that the useful life of the building was

$3$

$0$

$$years$,$ with no residual value.

a

$.$

$$Calculate annual depreciation expense using the straight

$-$

line method.

$Answer

$2$

$4$

$0$

$,$

$0$

$0$

$0$

b

$.$

$$Calculate depreciation for the

$$

rst and second year using the double

$-$

declining

$-$

balance method. Round to the nearest whole dollar amount. Use rounded answers in subsequestion calculations.

what is the Answer for year $1$ & year $2?$