Salem hardware consultants purchased a building for $540,000 into appreciated it on a straight line bases over 40 year. The estimate residual value is $100,000 after using the building for 15 years Salem realize that where in tear on the building will wear it out before 40 years and that the estimated residual value should be $88,000 starting with the 16th year sale and began depreciating the building over a revised total life of 35 years using the new residual value Journalize depreciation expense on the building for years 15 and 16