Part B

Mimosa Ltd constructed a building at a cost of $$960000.$ The building was completed on

$1$ January $2018$ and was expected to have a useful life of $25$ years after which time it would be

demolished at an expected demolition cost of $$100000.$ Being on the coast, the building was

subject to wild winds at times. On $1$ January $2023$ the roof of the building was blown away and

a replacement was constructed at a cost of $$200000.$ It was predicted that by replacing the

building$$s roof its expected useful life would now be $25$ years after the end of the $2022$ financial

year. Mimosa Ltd uses the straight$-$line method to depreciate the building and its financial year

ends on $31$ December.

REQUIRED

Calculate the depreciation cost for the $2022$ and $2023$ financial years. $($ If possible in accordance to the NZ $/$ Aus accounting standards