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Hardware Consultants purchased a building for $938,000 and depreciated it on astraight-line basis over a 40 -year period. The estimated residual value is $98,000 .

Hardware Consultants purchased a building for

$938,000 and depreciated it on astraight-line basis over a

40-year period. The estimated residual value is

$98,000. After using the building for 15years, Boston

Boston realized that wear and tear on the building would wear it out before 40

years and that the estimated residual value should be

$86,000. Starting with the 16thyear, Boston

Boston began depreciating the building over a revised total life of 35

35 years using the new residual value. Journalize depreciation expense on the building for years 15 and 16. (Record debitsfirst, then credits. Select the explanation on the last line of the journal entrytable.

Begin by journalizing the depreciation on the building for year 15.

Date

Accounts and Explanation

Debit

Credit

Now, journalize the depreciation on the building for year 16.

Date

Accounts and Explanation

Debit

Credit

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