In its first year of business, Coronado purchased land, a building, and equipment on March 5, 2020, for $588,000 in total. The land was valued at $262,500, the building at $312,500, and the equipment at $50,000. Additional information on the depreciable assets follows:

Asset	Residual Value		Useful Life in Years		Depreciation Method
Building	$25,200		60		Straight-line
Equipment	7,000		8		Double diminishing-balance

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

Land		$
Building		$
Equipment		$

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Coronado has a December 31 fiscal year end and is trying to decide how to calculate depreciation for assets purchased during the year. Calculate depreciation expense for the building and equipment for 2020 and 2021 assuming depreciation is calculated to the nearest month. (Round answers to 0 decimal places, e.g. 5,275.)

	2020		2021
Building	$		$
Equipment	$		$

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Coronado has a December 31 fiscal year end and is trying to decide how to calculate depreciation for assets purchased during the year. Calculate depreciation expense for the building and equipment for 2020 and 2021 assuming a half-year's depreciation is recorded in the year of acquisition. (Round answers to 0 decimal places, e.g. 5,275.)

	2020		2021
Building	$		$
Equipment	$		$

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Which policy should Coronado follow in the year of acquisition: recording depreciation to the nearest month or recording a half year of depreciation? Recording depreciation to the nearest monthBoth methodsRecording a half year of depreciation

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