Annual depreciation expense on a building purchased a few years ago (using the straight-line method) is $6,000. The cost of the building was $120,000. The current book value of the equipment (January 1, 2018) is $102,000. At the time of purchase, the asset was estimated to have a zero salvage value. On January 1, 2018, the company decided to reduce the original useful life by 25% and to establish a salvage value of $6,000. 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 2018.