Bailand Company purchased a building for $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 fifth year (before it records depreciation expense for the year), the following independent situations occur:

1.	Bailand estimates that the asset has 8 years life 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 been ignored in the computation of depreciation expense.

	Required:
	For each of the independent situations, prepare all the journal entries relating to the building for the fifth year. Ignore income taxes.

Bailand estimates that the asset has 8 years' life remaining (for a total of 12 years). Prepare the journal entry on December 31 to record depreciation in the fifth year after the change in estimate. Ignore income taxes PAGE 16 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DEBIT CREDIT Prepare the journal entry on December 31 to record depreciation in the fiith year after the change in depreciation method. Additionsl Instruction FAGE 16 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DESIT CREDIT Prepare the journal entries on December 31 to record the prior period adjustment for the error and depreciation in the fifth year. Ignore income taxes. Additiona Instruction PAGE 16 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT