Annual depreciation expense on a building purchased a few years ago (using the straight-line method) is $5,000 The cost of the building was $100,000 The current book value of the equipment (January 1, 2021) is $85,000 At the time of purchase, the asset was estimated to have a zero salvage value On January 1, 2021, the company decided to reduce the original useful life by 25 and to establish a salvage value of $5,000 .

The firm also decided double declining balance depreciation was more appropriate Ignore tax effects 

Required 

1 Prepare the journal entry, if any, to report the accounting change under GAAP .

2 Record the annual depreciation for 2021.