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 2014. His findings are as follows.

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.

Instructions
(a) Compute the revised annual depreciation on each asset in 2014. (Show computations.)
(b) Prepare the entry (or entries) to record depreciation on the building in2014.

Accumulated Useful Life Depreciation in Years Salvage Value Type Date of Asset Acquired Cost 1/1/14 Old Proposed Old Proposed Building /8 $800,000 $114,000 40 50 $40,000 $26,000 5,000 6,000 Warehouse 1/1/09 100,000 19,000 25 20