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On January 1, 2020, Creative Calligraphy Inc. purchased land, building, equipment, and tools for a total of $3,920,000. An appraisal identified the fair values to
On January 1, 2020, Creative Calligraphy Inc. purchased land, building, equipment, and tools for a total of \$3,920,000. An appraisal identified the fair values to be $1,008,000 (land), $1,316,000 (building), $392,000 (equipment), and $84,000 (tools). The estimated useful life and residual value of the building was 10 years and $770,000; for the equipment, five years and $56,000; and for the tools, three years and $8,400 Required: Calculate depreciation for 2020 and 2021 using the double-declining-balance method. Creative Calligraphy's year-end is December 31. (Do not round intermediate calculations and round your final answers to nearest whole dollar.)
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