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In the year an asset is retired or traded in, Eshkol, Inc. takes a
full year’s depreciation on the asset.

21) Mandall Company constructed a warehouse for $280,000
on January 2, 2014. Mandall estimates that the warehouse has
a useful life of 20 years and no residual value. Construction
records indicate that $40,000 of the cost of the warehouse
relates to its heating, ventilation, and air conditioning (HVAC)
system, which has an estimated useful life of only 10 years.
What is the first year of depreciation expense using straightline component depreciation under IFRS?

22) Francisco Corporation is constructing a new building at a
total initial cost of $10,000,000. The building is expected to
have a useful life of 50 years with no residual value. The
building’s finished surfaces (e.g., roof cover and floor cover)
are 5% of this cost and have a useful life of 20 years. Building