Yuki, Inc., acquired the following assets on January 1, 2008.

Equipment, estimated useful life 5 years; residual value $13,000 . . . . . . . . . . . . . . . . . . $513,000

Building, estimated useful life 40 years; no residual value . . . . . . . . . . . . . . . . . . . . . . . . 900,000

The equipment has been depreciated using the sum-of-the-years'-digits method for the first three years. In 2011, the company decided to change the method of depreciation to straight line. No change was made in the estimated service life or residual value. The company also decided to change the total estimated useful life of the building from 40 to 45 years with no change in the estimated residual value. The building is depreciated on the straight-line method. The company has 200,000 shares of capital stock outstanding. Partial results of operations for 2011 and 2010 are as follows:

Instructions:
1. Compute depreciation expense for 2011.
2. Compute earnings per share for 2010 and 2011. (Ignore income taxeffects.)

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2011 2010 Income before depreciation $890,000 $856,000