Lindy Weink, the new controller of Waterloo Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 1998 .

Determine acquisition costs Here are her findings:

All assets are depreciated by the straight-line method. Waterloo Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Lindy's proposed changes. (The "Proposed" useful life is total life, not remaining life.)

\section*{Instructions}

(a) Compute the revised annual depreciation on each asset in 1998. (Show computations.)

(b) Prepare the entry (or entries) to record depreciation on the building in 1998.

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Accumulated Useful Life Type of Asset Date Acquired Depreciation, (in years) Salvage Value Cost Jan. 1, 1998 Old Proposed Old Proposed Building Jan. 1, 1992 Warehouse Jan. 1, 1995 $800,000 100,000 $114,000 40 45 $40,000 $62,000 11,400 25 20 5,000 3,600