The company purchased an office building for $3,000,000 with an estimated useful life of 10 years with no salvage value on February 9, 2019

Instructions: Compute the depreciation for year 1 and 2 under each of the following methods:

1. straight-line method
2. sum-of-the-years-digit-method
3. double declining balance method

4. On January 1, 2016, Canberra Company acquired equipment for $2,160,000. The equipment is expected to have a five-year life. Straight-line depreciation is used. On January 1, 2018, the asset is appraised as having a sound value (depreciated replacement cost) of $1,944,000. On January 1, 2020, the asset is appraised at a sound value of $324,000.

Instruction: Prepare entries to record the above transactions.