Kiran Shah, the new controller of Ginarrbrik Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2012. His findings are as follows.

All assets are depreciated by the straight-line method. Ginarrbrik Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Kiran??s proposed changes.Instructions(a) Compute the revised annual depreciation on each asset in 2012. (Show computations.)(b) Prepare the entry (or entries) to record depreciation on the building in2012.

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Useful Life Accumulated Depreciation 1/1/12 Salvage Value Proposed $37,000 3,600 Type of Asset Date in Years Cost Old Proposed 40 25 Acquired 1/1/06 1/1/07 Old 50 20 $800,000 100,000 $114,000 19,000 $40,000 5,000 Building Warehouse