Salem Company hired Kirk Construction to construct an officebuilding for 8000000

Salem Company hired Kirk Construction to construct an officebuilding for 8000000 on land costing 2000000 which SalemCompany owned. The building was complete and ready to be used onJanuary 1 2013 and it has a useful life of 40 years. The price ofthe building included land improvements costing 600000 andpersonal property costing 750000. The useful lives of the landimprovements and the personal property are 10 years and 5 yearsrespectively. Salem Company uses component depreciation and thecompany uses straight-line depreciation for other similar assets.What is the net amount reported for the building on Salem CompanysDecember 31 2013 statement of financial position?