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.

Required:

At the beginning of 2014, the following independent situations occur. For each of these situations, prepare all journal entries related to the building for 2014. Ignore income taxes.

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

Depreciation expense xxxxxxx

Accum. Dep. xxxxxxx

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

Accum Dep. xxxxxx

???? xxxxxx