Annual depreciation expense on a building purchased a few years ago (using the straight-line method) is $5,700. The cost of the building was $114,000. The current book value of the equipment (January 1, 2018) is $96,900. 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 $5,700. 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. Record the journal entry, if any, to report the accounting change.

Record the annual depreciation for 2018.