E10-8 Kiran Shah, the new controller of Ginarrbrik Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2012. His findings are as follows. 40 Accumulated Useful Life Type of Date Depreciation in Years Salvage Value Asset Acquired Cost 1/1/12 Old Proposed Old Proposed Building 1/1/06 $800,000 $114,000 50 $40,000 $37,000 Warehouse 1/1/07 100,000 19,000 25 20 5,000 3,600 All assets are depreciated by the straight-line method. Ginarrbrik Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Kiran's proposed changes. Instructions (a) Compute the revised annual depreciation on each asset in 2012. (Show computations.) (b) Prepare the entry (or entries) to record depreciation on the building in 2012