#2 please

E8-25 (Algo) (Supplement) Computing the Effect of a Change in Useful Life and Residual Value on Financial Statements and Cash Flows (Straight-Line Depreciation) LO8-3, 8-7 Yukelson Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows: $ 412,500 Cost when acquired Accumulated depreciation (based on straight-line depreciation, an estimated life of 50 years, and a $37,500 residual value) 60,000 During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $22,500 (from $37,500)). The depreciation method will not change. Required: 1. Compute the annual depreciation expense prior to the change in estimates. Depreciation expense $ 7,500 2. Compute the annual depreciation expense after the change in estimates. Depreciation expense