Pea Company purchased $70$ percent of Split Company's stock approximately $20$ years ago. On December $31,20$X$8,$ Pea purchased a

building from Split for $$420,000.$ Split had purchased the building on January $1,201,$ at a cost of $$520,000$ and used straight$-$line

depreciation on an expected life of $20$ years. The asset's total estimated economic life is unchanged as a result of the intercompany

sale.

Required:

a$.$ What amount of depreciation expense on the building will Pea report for $20$X$9?$

Answer is complete and correct.

$\backslash$table$[[$Annual depreciation expense reported by Pea,$$,35,000$