3 On March 31, 2024, Susquehanna Insurance purchased an office building for $11.700,000. Based on theirrelative fair values, one-third of the purchase price was allocated to the land and two-thirds to the buildingFurniture and fixtures were purchased separately from office equipment on the same date for $1,350,000 and$850,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residualvalues of these assets are as follows:BuildingFurniture and fixturesoffice equipmentService Life25105Required:1. Calculate depreciation for the years ended December 31, 2024 and 2025.2. What book values would be reported in the December 31, 2025, balance sheet (including land)?BuildingFurniture and futuresOffice equipmentResidual Value5% of cost5% of costComplete this question by entering your answers in the tabs below.$ 45,000Required 1 Required 2Calculate depreciation for the years ended December 31, 2024 and 2025.Note: Do not round intermediate calculations.Depreciation20242025Required 2 >

Name: 3 On March 31, 2024, Susquehanna Insurance purchased an office buildin
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Description: 3 On March 31, 2024, Susquehanna Insurance purchased an office building for $11.700,000. Based on theirrelative fair values, one-third of the purchase price was allocated to the land and two-thirds to the buildingFurniture and fixtures were purchased

Cost of land = 11,700,000 * 1/3 = 3,900,000Cost of Building = 11,700,000 * 2/3 = 7,800,000Residual…

Answered: 1. Calculate depreciation for the years…

Business

Accounting

1. Calculate depreciation for the years ended December 31, 2024 and 2025, 2. What book values would be reported in the December 31, 2025, balance sheet (including land)?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 55P

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On March 31, 2024, Susquehanna Insurance purchased an office building for $12,300,000. Based on their relative fair val of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased sep office equipment on the same date for $1,370,000 and $870,000, respectively. The company uses the straight-line methc depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimat lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 30 10 5 Residual Value 10% of cost 10% of cost Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? $ 47,000 Complete this question by entering your answers in the tabs below. 2024 Required 1 Required 2 Calculate depreciation for the years ended December 31, 2024 and…
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