Part 1 (4 points) At the beginning of year 2018, Robotics Inc. acquired a building for $9 million. Depreciation for 2018 and 2019 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. At the beginning of year 2020, the estimates of total useful life and residual value were changed to 20 years and $500,000, respectively. How much is the depreciation expense on the building for year 2020?

Before the two changes:

Annual depreciation expense =

2018 depreciation =

2019 depreciation =

Book value at the beginning of year 2020 =

After the two changes:

New annual depreciation expense =

2020 depreciation expense =