Presented below are the components related to an office building that Lockard Company purchased for 10,000,000 in January of 2015.

Component Useful Life Value

Building external works 30-year life 900,000

Building engineering 30-year life 2,400,000

Building structure 60-year life 5,400,000

Instructions

1. Compute depreciation expense for 2015, assuming that Lockard uses component depreciation and uses the straight-line method of depreciation.
2. Compute depreciation expense for 2015, assuming that Lockard depreciates as a single unit and uses the straight-line method of depreciation.