QUESTION

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On January 1, 2020, Creative Calligraphy Inc. purchased land, building, equipment, and tools for a total of $\$ 3,020,000$. An appraisal identified the fair values to be $\$ 728,500$ (land), $\$ 1,175,000$ (building), $\$ 376,000$ (equipment), and $\$ 70,500$ (tools). The estimated useful life and residual value of the building was 10 years and $\$ 725,000$; for the equipment, five years and $\$ 47,000 ;$ and for the tools, three years and $\$ 7,500$. Required: Calculate depreciation for 2020 and 2021 using the double-declining-balance method. Creative Calligraphy's year-end is Oecember 31. (Do not round intermediate calculations and round your final answers to nearest whole dollar.) \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ PPE Asset } & 2020 Depreciation & 2021 Depreciation \\ \hline Land & & \\ \hline Bullding & & \\ \hline Equlpment & & \\ \hline Tools & & \\ \hline \end{tabular}


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