the entry to correct the prior years' depreciation, if necessary (b) Prepare the entry to record depreciation for 2016. E11 -12 Depreciation Computation-Addition, Change in Estimate) In 1988, Abraham Company com- pleted the construction of a building at a cost of 1,900,000 and first occupied it in January 19ss It was esti mated that the building will hav e a useful life of 40 years and a residual value of 60,000 at the end of that time. that time it was Early in 1999, an addi and that the addition would have a life of 30 years and a residual value of a cost of 470,000. t tion to the building was constructed at estimated that the remaining life of the building would be, as originally estimated, an addito In 2017, it is determined that the probable life of the building and addition wil wl extend to the extend to the end of 2048, or 20 years beyond the original estimate. Instructions (a) Using the straight ltine method, compute the annual depreciation that would have been from 1989 through 1998. (b) Compute the annual depreciation that would have been charged from 1999 through 2016. (c) P repare the entry, if necessary, to adjust the account balances because of the revision of the esti- mated life in 2017 (d) Compute the annual depreciation to be charged beginning with 2017 2 3 E11-13 (Depreciation-Replacement, Change in Estimate) Peloton Company sonstristodi