Problems Brie Company is in the process of preparing its financial statements for 2015. Assume that no entries for depreciation have been recorded in 2015. The following information related to depreciation of fixed assets is provided to you. Brie purchased equipment on January 2, 2012 for $85,000. At that time, the equipment had an estimated useful life of 10 years with a $5,000 residual value. The equipment is depreciated on a straight-line basis. On January 2, 2015 as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,000 residual value. . During 2015, Brie changed from the double declining balance method for its building to the straight-line method. The building originally cost $300,000. It had a useful life of 10 years and a residual value of $30,000. The following computations present depreciation on both bases for 2013 and 2014 Brie purchased a machine on July 1, 2013 at a cost of $120,000. The machine has a residual value of $16,000 and a useful life of 8 years. Brie's bookkeeper recorded straight line depreciation in 2013 and 2014 but failed to consider the residual value Required: a) Prepare the journal entries to record depreciation expense for 2015 and correct any errors made to date related to the information provided b) Show comparative net income for 2014 and 2015. Income before depreciation expense was $300,000 in 2015, and was $310,000 in 2014. (ignore taxes!) 2014 2013 Straight line $27,000 $27,000 Declining 48,000 60,000 Balance