Terry Wade, the new controller of Blue Spruce Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings:

		Date				Accumulated Depreciation		Useful life (in Years)				Salvage Value
Type of Asset		Acquired		Cost		Jan. 1, 2022		Old		Proposed		Old		Proposed
Building		Jan. 1, 2016		$810,000		$114,750		40		50		$45,000		$74,850
Warehouse		Jan. 1, 2017		108,000		20,660		25		20		4,700		15,340

All assets are depreciated by the straight-line method. Blue Spruce Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terrys proposed changes. (The Proposed useful life is total life, not remaining life.)

(a)

Compute the revised annual depreciation on each asset in 2022.

		Building		Warehouse
Revised annual depreciation

(b)

Prepare the entry to record depreciation on the building in 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31