Tamarisk Company purchases a building for $11,204,350 on January 2, 2017. An engineers report shows that of the total purchase price, $10,892,000 should be allocated to the building (with a 40-year life), $161,400 to 15-year property, and $150,950 to 5-year property. No residual (salvage) value should be considered. Compute depreciation expense for 2017 using component depreciation.

Depreciation expense