On January 1, 2016, Karen Company purchased a building and machinery that have the following useful lives, salvage value, and costs.

Building, 25-year estimated useful life, $8,290,000 cost, $829,000 salvage value

Machinery, 10-year estimated useful life, $1,570,000 cost, no salvage value

The building has been depreciated under the straight-line method through 2020. In 2021, the company decided to switch to the double-declining balance method of depreciation for the building. Karen also decided to change the total useful life of the machinery to 8 years, with a salvage value of $78,500 at the end of that time. The machinery is depreciated using the straight-line method.

Collapse question part

(a)

This grade has been saved to Gradebook. Your answer has been saved and sent for grading. See Gradebook for score details.

Prepare the journal entry necessary to record the depreciation expense on the building in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

Depreciation Expense 679,780

Accumulated Depreciation-Building 679,780

Collapse question part

(b)

Compute depreciation expense on the machinery for 2021.

Depreciation expense $