On January 1, 2008, Klinefelter Company purchased a building for $520,000. The building had an estimated life of 20 years and an estimated residual value of $20,000. The company has been depreciating the building using straight-line depreciation.

b. The company changes to the sum-of-the-years'-digits method. Round your answer to nearest whole dollar.

Depreciation Expense xxxxx

Accumulated Depreciation xxxxx

c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year.

Accumulated Depreciation xxxx

Retained Earnings xxxxx

(prior period adjustment)

Depreciation Expense xxxxx

Accumulated Depreciation xxxxx

(record depreciation for 2014)