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Question: A. At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2014 and 2015 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2016 the company switched to the double-declining-balance depreciation method.
What is depreciation on the building for 2016?
B. At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2014 and 2015 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. Assume that 2014 depreciation was incorrectly recorded as $32,000. This error was discovered in 2016.
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