Exercise 11-12 In 1987, Herman Moore Company completed the construction of a building at a cost of $2,800,000and first occupied it in January 1988. It was estimated that the building will have a useful life of40years and a salvage value of $84,000at the end of that time. Early in 1998, an addition to the building was constructed at a cost of $700,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional30years, and that the addition would have a life of30years and a salvage value of $28,000. In 2016, it is determined that the probable life of the building and addition will extend to the end of 2047, or20years beyond the original estimate. Warning Don't show me this message again for the assignment Ok Cancel

Using the straight-line method, compute the annual depreciation that would have been charged from 1988 through 1997. (Round answer to 0 decimal places, e.g. 45,892.)

Annual depreciation from 1988 through 1997

$

/ yr

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Compute the annual depreciation that would have been charged from 1998 through 2015. (Round answer to 0 decimal places, e.g. 45,892.)

Annual depreciation from 1998 through 2015

$

/ yr

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Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2016.(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

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Compute the annual depreciation to be charged, beginning with 2016. (Round answer to 0 decimal places, e.g. 45,892.)

Annual depreciation expensebuilding

$