Changing the useful life of berty, plant, and equipment (3) Exercise 10-9 Jacoby Legal Services purchased land and a building for $1,100,000. The land had a fair value of $300,000 and the building $800,000. The building was amortized on a straight- line basis over a 50-year period. The estimated residual value was $50,000. After using the building for 20 years, the company realized that wear and tear on the building would force the company to replace it before 50 years. Starting with the 21st year, the company began amortizing the building over a revised total life of 40 years with zero residual value. Record amortization expense on the building for years 20 and 21. Amortization for Year 21, $25,000