Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2020. His findings are as follows.

All assets are depreciated by the straight-line method. Hellickson Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terry€™s proposed changes.

Instructions
a. Compute the revised annual depreciation on each asset in 2020. (Show computations.)
b. Prepare the entry (or entries) to record depreciation on the building in 2020.

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Useful Life Accumulated Salvage Value Date in Years Depreciation 1/1/20 Type Proposed Cost Acquired Proposed of Asset Old Old $40,000 Building $800,000 100,000 $114,000 $26,000 6,000 1/1/14 40 25 50 Warehouse 19,000 1/1/15 20 5,000