Kinlay Limited constructed a building at a cost of $$2,000,000$ and has occupied it since January $1995$

It was estimated at that time that its life would be $45$ years, with a residual value of $$425,000.$

In January $2005,$ an addition to the building was constructed at a cost of $$750,000.$ At that time, no changes were expected in its useful life, but the residual value with the addition was estimated to increase by $$225,000.$ The addition would not be of economic use to the company beyond the life of the original structure.

In $2023,$ as a result of a review of its depreciation policies, management determined that the building's oniginal life should have been estimated at $40$ years. They have also determined that the building and addition are unlikely to have any residual value at the end of the $40-$year period.

Instructions

a$)$ What amount of depreciation was charged annually for the years $1995$ through $2004?($assume straight line depreciation$)(2$ marks$)$

b$)$ Calculate the annual depreciation that would have been charged from $2005$ through $2022.(4$ marks$)$

c$)$ Prepare the entry, if necessary, to adjust the account balances for prior years because of the revision of the estimated life in $2023.(2$ marks$)$

d$)$ What amount of depreciation should be charged for the year $2023.$ Show calculation.$(4$marks$)$