Victor Mineli, the new controller of Santorini Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2025. Here are his findings:

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

Instructionsa. Compute the revised annual depreciation on each asset in 2025. (Show computations.)b. Prepare the entry (or entries) to record depreciation on the building in 2025.

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Type of Asset Building Warehouse Date Acquired Jan. 1, 2017 Jan. 1, 2020 Cost $700,000 120,000 Accumulated Depreciation, Jan. 1, 2025 $130,000 23,000 Useful Life (in years) Old 40 25 Proposed 58 20 Salvage Value Old $50,000 5,000 Proposed $35,000 3,600