Jack Kingman the new controller of Henderson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2021. His findings are as follows. Type of Asset Building Warehouse Date Acquired 1/1/15 1/1/16 Cost $1,600,000 300,000 Accumulated Depreciation 1/1/21 $228,000 57,000 Useful Life (in Years) Old Proposed Compute the revised annual depreciation on each asset in 2021. Building 40 25 50 Type of Asset 20 Salvage Value Old $80,000 Warehouse All assets are depreciated by the straight-line method. Henderson Company uses a calendar year in preparing annual financial statement. After discussion, management has agreed to accept Jack's proposed changes. 15,000 Proposed $140,000 27,000 V C A C A C A C A C

Compute the revised annual depreciation on each asset in 2021. Show how the building is reported in the balance sheet. Prepare the entry to record depreciation on the building in 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.)