in its first year of business, atc company purchased land, a building, and a equipment on november 20 2016 for november 700000 in total. The land was valued 338000 and building at 262000 and the equipment at 150000. Additional information on the depreicable asset follows:

Assest Residual Value Useful life in years Depriciation Method

Building 15,000 60months residual value Straight line

Equipment 15,000 8months residual value Double diminishing balance

Instructions:

a. Allocate the purchase cost of the land, building and equipment to each of the asset,

b. atc has a december 31 fiscal year and is trying to decide how to calculate depriciation for asset purchased during the year. Calculate the depreication expense for the building and equipment for 2016 and 207 assuming

1. depreciation is calculated to the nearest month

2. a half year depriciation is recorded in the year of the acquisition

c. Which policy should atc follow in the year of acquisition recordsing depriciation to the nearest month or revcording half year of depricitaiom of the depriciation.