On March 31, 2016, Susquehanna Insurance purchased an office building for $12,000,000. 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 $1,360,000 and $860,000, 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	30	10% of cost
Furniture and fixtures	20	10% of cost
Office equipment	10	$46,000