On January 1, Molly Corp. purchased land with a usable building on it for $240,000. At the time of purchase, the fair market values of the land and building were $100,000 and $150,000, respectively. Molly depreciates the building using the straight-line method over 20 years with an expected $24,000 residual value. The annual depreciation expense on the building is

Answer

		$0.
		$6,000.
		$6,300.
		$10,800