Question One. The costs incurred by Noriega Company to acquire land and construct a building were as follows:

i.	Land	k150,000,000
ii.	Construction insurance	k3,500,000
iii.	Delinquent tax paid on the land	k 5,000,000
iv.	Building construction contract	k 220,000,000
v.	Architect Fees	k2,000,000
vi.	Street and side Walk installation	k4,000,000
vii.	Excavation Costs	k3,100,000
viii.	Property Tax on land (pro to construction)	k1,600,000
ix.	Interest cost on loan to pay contract	k2,600,000

Requirements: a. Determine the cost of land (3 Marks) b. Determine the cost of the building ( 3 Marks) c. Assuming the residue value of the building is K60,000,000 and that the economic life is Ten years, compute Noriega LTD Companys depreciation expense for Year 1, Year 2, Year 3 under the following methods i. Straight line Method (2 Marks) ii. Double Declining Method (2 Marks) iii. The Sum of Years Digit (SYD) Method ( 2 Marks) d. At the beginning of Year 4, Noriega LTD Company incurred an additional Cost of K10, 000,000 in order to add a new wing to the building; as a result the salvage value of the building is increased by k5, 000,000 and also increased the remaining life of the building by 2 years.

i. Re- Calculate the depreciation for the next two years using the straight line method. ( 3 Marks)