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 2017. Here are his findings:

Accumulated Useful Life Type of Date Depreciation, (in years) Salvage Value Asset Acquired Cost Jan. 1, 2017 Old Proposed Old Proposed Building Jan. 1, 2009 $700,000 $130,000 40 48 $50,000 $35,000 Warehouse Jan. 1, 2012 120,000 23,000 25 20 5,000 3,600 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.)

Instructions

(a) Compute the revised annual depreciation on each asset in 2017. (Show computations.)

(b) Prepare the entry (or entries) to record depreciation on the building in 2017.