Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2015. His findings are as follows.

Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2015. His findings are as follows.
			Accumulated Depreciation	Useful Life in Years		Salvage Value
Type of Asset	Date Acquired	Cost	1/1/2015	Old	Proposed	Old	Proposed
Building	1/1/2009	$800,000	$114,000	40	50	$40,000	$26,000
Warehouse	1/1/2010	100,000	19,000	25	20	5,000	6,000

All assets are depreciated by the straight-line method. Hellickson Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terry's proposed changes.

A. Compute the revised annual depreciation on each asset in 2015. (Show computations.)

B. Prepare the entry (or entries) to record depreciation on the building in 2015.

Presented below are selected transactions at Ridge Company for 2015.
Jan. 1	Retired a piece of machinery that was purchased on January 1, 2005. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value.
30-Jun	Sold a computer that was purchased on January 1, 2012. The computer cost $45,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.
Dec. 31	Discarded a delivery truck that was purchased on January 1, 2011. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

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					Building	Warehouse
(a)
(b)
Date	Account Titles				Debit	Credit
Dec. 31
E9-9
Date	Account Titles				Debit	Credit
Jan. 1
June 30
30
Dec. 31
31