Case Instructions On January 1, 2019, Penelope Company purchased a building and machinery that have the following useful lives, salvage value, and costs.

Building, 25-year estimated useful life, $9,000,000 cost, $900,000 salvage value Machinery, 10-year estimated useful life, $1,200,000 cost, no salvage value

The building has been depreciated under the straight-line method through 2023. In 2024, the company decided to switch to the double-declining balance method of depreciation for the building. Penelope also decided to change the total useful life of the machinery to 8 years, with a salvage value of $60,000 at the end of that time. The machinery is depreciated using the straight-line method.

Instructions

a) Prepare a detailed calculation of 2024 depreciation expense on the building. b) Prepare the journal entry necessary to record the depreciation expense on the building in 2024. Journal entry description is not required. c) Prepare a detailed calculation of 2024 depreciation expense on the machinery.