On March $31,2024,$ Susquehanna Insurance purchased an office building for $$13,200,000.$ Based on their relative fair values, one$-$third of the purchase price was allocated to the land and two$-$thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $$1,400,000$ and $$900,000,$ respectively. The company uses the straight$-$line method to depreciate its buildings and the double$-$declining$-$balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows:

Service Life Residual Value

Building $255\%$ of cost

Furniture and fixtures $105\%$ of cost

Office equipment $5$ $ $50,000$

Required:

Calculate depreciation for the years ended December $31,2024$ and $2025.$

What book values would be reported in the December $31,2025,$ balance sheet $($including land$)?$On March $31,2024,$ Susquehanna Insurance purchased an office building for $$13,200,000.$ Based on their relative fair values, one$-$third

of the purchase price was allocated to the land and two$-$thirds to the building. Furniture and fixtures were purchased separately from

office equipment on the same date for $$1,400,000$ and $$900,000,$ respectively. The company uses the straight$-$line method to

depreciate its buildings and the double$-$declining$-$balance method to depreciate all other depreciable assets. The estimated useful

lives and residual values of these assets are as follows:

Required:

Calculate depreciation for the years ended December $31,2024$ and $2025.$

What book values would be reported in the December $31,2025,$ balance sheet $($including land$)?$

Complete this question by entering your answers in the tabs below.

Calculate depreciation for the years ended December $31,2024$ and $2025.$

Note: Do not round intermediate calculations.