Monty Corp. acquired a property on September 15, 2020, for $260,000, paying $3,000 in transfer taxes and a $2,000 real estate fee. Based on the provincial assessment information, 85% of the propertys value was related to the building and 15% to the land. It is estimated that the building, with proper maintenance, will last for 20 years, at which time it will be torn down and have zero salvage value. Monty, however, expects to use it for 10 years only, as it is not expected to suit the companys purposes after that. The company should be able to sell the property for $171,000 at that time, with $43,000 of this amount being for the land. Monty prepares financial statements in accordance with IFRS. Depreciation expense should be calculated to the nearest half month.

(a)

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Assuming a December 31 year end, identify the buildings cost.

Cost of the building

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(b)

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Assuming a December 31 year end, identify the buildings depreciable amount.

Depreciable amount

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(c)

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Assuming a December 31 year end, identify the buildings useful life.

Buildings useful life

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(d)

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Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method. (Do not round intermediate calculations and round answer to 0 decimal places, e.g. 5,275.)

Depreciation expense for 2020

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