Harrison rentals purchased an apartment building in 2013. At the time, the building was expected to have a useful life of 25 years with a residual value of $100,000. The building's original cost was $500,000. Harrison has a December 31 fiscal year end.

At December 31, 2021, the accumulated depreciation balance on this building was $144,000. During January 2022, Harrison had the following transactions related to the building.

I. Painted all the walls in the common areas at a cost of $8,000

II. Replaced the electrical wiring in three suites due to safety concerns at a cost of $4,500

III. Replaced all the linoleum flooring in the suites with hardeood, installed dishwashers and in-suite laundry facilities in each unit, and made other improvements at total cost of $120,000. As a result, the annual rental revenue has been doubled

IV. Completed structural repairs to the building at a cost of $100,000. As a result of this work the building life is expected to be 10 years longer than the original estimate. The residual value estimate has been revised to $134,000.

a) Calculate the new net book value/carrying amount of the building after all expenditures mentioned above

b) Prepare the entry to record the new 2022 depreciation expense using the straight-line basis