Yukelson Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end

of last year as follows:

Cost when acquired

Accumulated depreciation $($based on straight$-$line depreciation, an

estimated life of $50$ years, and a $$37,000$ residual value$)$

$$407,000$

$66,609$

During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed

to $30$ years $($instead of $50)$ and the residual value reduced to $$27,500($from $$37,000).$ The depreciation method will not change.

Required:

Compute the annual depreciation expense prior to the change in estimates.

Compute the annual depreciation expense after the change in estimates.