DELUCA SOLUTIONS INC. Deluca Solutions Inc. is an Ontario-based manufacturer. The company is listed on the TSX, but the family of founder David Deluca retains control through multiple-voting shares. Deluca undertook modernization of its production facilities during fiscal year 2084. As part of the modernization process, the following events occurred: 1. Production equipment has been replaced by newer systems. The old equipment will be sold if a buyer can be found. The company has not yet identified a method for finding a likely buyer for the equipment. At the time its use was discontinued, the equipment had a carrying value of $1.000,000. Deluca's production manager estimates that it could be sold for about half that price, at best. 2. The company discontinued using a small four-year-old building that has housed one part of a production process. Since the building is on Deluca's property, among the company's other buildings. it is not feasible to sell the building or to rent it to an outside organization However, it is quite possible that Deluca will find a use for it in some future year. The building originally cost $3,000,000 to construct and is being depreciated on a straight-line basis over 20 years. 3. A warehousing conveyor system is being replaced. A buyer for the old system, including supplies and spare parts, is actively being sought so that it can be dismantled to make room for the new system. The warehousing manager estimates that the cost of dismantling the system will be about $600 000