luxurious ltd purchased a building on a prime central business district site for $2 000 000. the value of the land is considered to be $700 000. the useful life of the building is expected to be 40 years after luxurious ltd spends a further $200 000 on improvements. the residual value of the building at that time is estimated to be $300 000. the benefits from owning the land and building are expected to be derived evenly. what is the appropriate annual depreciation charge.

37 500

30 000

50 000

22 000