Steve Grant, the new controller o( Greenberg Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2006. His findings are as follows.

All assets are depreciated by the straight-line method. Greenberg Company uses a calendar year in preparing annual financial statements. Altei discussion, management has agreed to accept Steve's proposed changes.
Instructions

(a) Compute the revised annual depreciation on each asset in 2006. (Show computations.)

(b) Prepare the entry (or entries) to record depreciation on the building in 2006.

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Type of Asset Date Acquired Accumulated Depreciation Useful Life in Years Cost 1/1/06 Old Proposed Old Building 1/1/98 $800.000 $152,000 40 50 Warehouse 1/1/01 100,000 19,000 25 20 $40,000 5,000 Salvage Value Proposed $18,000 3.600