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In accounting, depreciation refers to an expense incurred on an intangible asset due to corrosion and abrasion. A firm may adopt various methods for computing depreciation to reflect the true and accurate value of the asset.

Computation of depreciation of finished surfaces:

Cost of asset = Initial cost x Rate covering building surfaces

= $10,000.00 x 5%

= $500,00

Depreciation = $\frac{\mathrm{Original}\mathrm{cost}}{\mathrm{Useful}\mathrm{life}}$

= $\frac{\$500,000}{20}$

= $25,000

Computation of depreciation of service systems:

Cost of asset = Initial cost x Rate covering building service system

= $10,000,000 x 20%

= $2,000, 000

Depreciation = $\frac{\mathrm{Original}\mathrm{cost}}{\mathrm{Useful}\mathrm{life}}$

= $\frac{\$2,000,000}{25}$

= $80,000

Computation of depreciation for the remaining cost of building:

Cost = Initial building cost - Cost of asset of surfaces and service system

= $10,000,000 - $500,000 - $2,000,000

= $7,500,000

Depreciation = $\frac{\mathrm{Original}\mathrm{cost}}{\mathrm{Useful}\mathrm{life}}$

= $\frac{\$7,500,000}{50}$

$150,000

So, the total depreciation is $255,000 ($25,000+80,000+$150,000).

Option (a): Depreciation expense of $200,000 only includes the depreciation of the finished surfaces ($25,000) and the depreciation of the remaining cost of the building ($150,000). The depreciation of the service system is omitted.

Option (b): The service system's depreciation expense may be undervalued because the actual depreciation is $80,000 and the incorrect depreciation is $15,000.

Option (d): The depreciation expense for the asset is $255,000, and it is also mentioned in option (c), so options (a), (b), and (d) are incorrect.