ACCT231

Bailand Company purchased a building tor $148,000 that had an estimated residual value of $8,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fitt year (before it records depreclation expense for the yoar), the following independent situations occur: 1. Bailand estimates that the asset has 8 years' Ilie remaining (for a total of 12 years). 2. Bailand changes to the sum-of-the-years'-digits method. 3. Bailand discovers that the estimated residual value has beon ignored in the computation of depreciation expense. Required: For each of the independent situations, prepare all the joumal entries relating to the buiding for the firh year. Ignore income taxes