Victor Mineli, the new controller of Santorini Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. Here are his findings:

Type of

Asset

Date

Acquired

Cost

Accumulated

Depreciation,

Jan. 1, 2017

Useful Life

(in years)

Salvage Value

Old

Proposed

Old

Proposed

Building

Jan. 1, 2009

$700,000

$130,000

40

48

$50,000

$35,000

Warehouse

Jan. 1, 2012

120,000

23,000

25

20

5,000

3,600

All assets are depreciated by the straight-line method. Santorini Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.)

Instructions

Compute the revised annual depreciation on each asset in 2017. (Show computations.)