Consultants purchased a building for

$440,000

and depreciated it on a straight-line basis over

40

years. The estimated residual value was

$82,000.

After using the building for

20

years,

Fresno

realized that the building would remain useful only

14

more years. Starting with the

21st

year,

Fresno

began depreciating the building over a revised total life of

34

years and decreased the residual value to

$14,600.

Requirement

1. Record depreciation expense on the building for years

20

and

21.

(Record debits first, then credits. Exclude explanations from any journal entries.)

Question content area bottom

Part 1

Start by recording depreciation expense on the building for year

20.

Journal
Date	Accounts	Debit	Credit
Year 20