6 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 5 385,000 Cost when acquired Accumulated depreciation (based on straight-line depreciation, an stimated life of 50 years, and 335,000 residual value) 70,000 Print 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 $25,000 (from $35.000) The depreciation method will not change Required: 1. Compute the annual depreciation expense prior to the change in estimates Depreciation experts $ 7.000 2. Compute the annual depreciation expense after the change in estimates Depreciation 3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year? Decreasing the use and the residual value of the asset wil increase total assets on the balance sheet will Increase nel income on the income statement and will total cash Bows on the statement of cash flows for the year