Annual depreciation expense on a building purchased a few years ago (using the straight-line method) is $4,900. The cost of the building was $98,000. The current book value of the equipment (January 1, 2016) is $83,300. At the time of purchase, the asset was estimated to have a zero salvage value. On January 1, 2016, the company decided to reduce the original useful life by 25% and to establish a salvage value of $4,900. The firm also decided double-declining-balance depreciation was more appropriate. Ignore tax effects.

Required:

1.	Record the journal entry, if any, to report the accounting change 2. Record the annual depreciation for 2016