Frank Corporation had the following assets on January 1, 2021:

Asset Cost Purchase Date Useful Life Salvage Value

Building $500,000 Jan. 1, 2001 30 Years $100,000

Equipment 200,000 July 1, 2015 8 Years 8,000

During 2021, Frank Corporation revises the total useful life of building to 45 years and its salvage value to $50,000. Equipment is sold on October 1, 2021 for $60,000.

1. building

1. Calculate the book value of the building on 1/1/2021.
2. Calculate the revised annual depreciate for building and recorded the depreciation journal entry at 12/31/2021.
3. Show how the building will be reported on the balance prepared on 12/31/2021.

2. Equipment

1. Prepare the journal entry to record the depreciation prior to sale and calculate the book value of the equipment on 10/01/2021.
2. Prepare the journal entry to record the sale of equipment on 10/01/2021