Exercise 11-7 Depreciation methods; partial periods [LO11-2] On March 31, 2018, Susquehanna Insurance purchased an office building for $12,600,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,220,000 and $720,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets.

The estimated useful lives and residual values of these assets are as follows:

Service Life Residual Value Building 30 5% of cost

Furniture and fixtures 10 5% of cost

Office equipment 5 $32,000

Required: Calculate depreciation for 2018 and 2019.