. As of January 1, 2013, JJS is evaluating the building for possible impairment. The building has a remaining useful life of 12 years JJs Corporation purchased a building on January 1, 2009, for a total of $12,000,000. The building has been depreciated using the straight-line method with a 20-year useful life and no residual valueand is expected to generate cash inflows of $850,000 per year. The estimated fair value of the building on January 1, 2013, is $6,800,000.
Assume that JJS is a non-U.S. company and uses international accounting standards. Compute depreciation expense for 2013.