Lindy Weink, the new controller of the Waterloo Company, has reviewed the expected aseful tives and salvage values of selected depreciable assets at the beginning of 1996. Her findings are as follows:

All assets are depreciated by the straight-line method. Waterloo Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Lindy's proposed changes.
\section*{Instructions}

(a) Compute the revised annual depreciation on each asset in 1996. (Show computations.)

(b) Prepare the entry (or entries) to record depreciation on the building in 1996 Journalize entries for disposal of plant assets.
\((\mathrm{SO} 6\) )

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Accumulated Useful Life in Years Salvage Value Type of Asset Date Depreciation Acquired Cost 1/1/96 Old Proposed Old Proposed Building 1/1/90 $800,000 $114,000 40 45 $40,000 $62,000 Warehouse 1/1/93 100,000 11,400 25 20 5,000 3,600