Exercise 9-8

Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2015. His findings are as follows.

		Date				Accumulated Depreciation		Useful life in Years				Salvage Value
Type of Asset		Acquired		Cost		1/1/15		Old		Proposed		Old		Proposed
Building		1/1/09		$800,000		$114,000		40		50		$40,000		$26,000
Warehouse		1/1/10		100,000		19,000		25		20		5,000		6,000

All assets are depreciated by the straight-line method. Hellickson Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terrys proposed changes.

Compute the revised annual depreciation on each asset in 2015.

Revised annual depreciation BUILDING= WAREHOUSE=

Prepare the entry to record depreciation on the building in 2015. (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.)

DATE	Accoutnts titles and explanations	Debit	Credit
DEC 31st