Mandall Company constructed a warehouse for $280,000 on January 2, 2014. Mandall estimates that the warehouse has a useful life of 20 years and no residual value. Construction records indicate that $40,000 of the cost of the warehouse relates to its heating, ventilation, and air conditioning (HVAC) system, which has an estimated useful life of only 10 years.on its December 31 , 2019 statement , financial statement mandal depreciates the HVAC system separately from the warehouse

this treatment is incorrect under both IFRS and US GAAP