Changes and Corrections of Depreciation

On January 1, 2008, Kinefelter Company purchased a building for $520,000. The buliding had an estimated life of 20 years and an estimated residual value of $20,000. The company has been depreciating the buliding using straight-line depreciation.

At the beginning of 2014, the following independent situations occur. For each of these situations, prepare all journal entries related to the building for 2014. Ignore income taxes.

a. The company esrimates that the building has a life of 10 years(for a total of 16 years)

b. The company changes to the sum-of-the-years' method. Round your answer to the nearest whole dollar.

c. Company discovers that it had ignorned the estimated residual value in the computation of the annual depreciation each year.

Prior period adjustment for error

To record depreciation for 2014