Question

Presented below are the components related to an office building that Lockard Company purchased for €10,000,000...

Presented below are the components related to an office building that Lockard Company purchased for €10,000,000 in January of 2015.

                                    Component                              Useful Life                  Value

                                    Building external works          30-year life                 900,000

                                    Building engineering               30-year life              2,400,000

                                    Building structure                    60-year life             5,400,000

Instructions

  1. Compute depreciation expense for 2015, assuming that Lockard uses component depreciation and uses the straight-line method of depreciation.
  2. Compute depreciation expense for 2015, assuming that Lockard depreciates as a single unit and uses the straight-line method of depreciation.
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