Jerry Grant, the new controller of Blackburn Company, has received the expected useful lives and salvage values of Selected depreciable assets at the beginning of 2008. His findings are as follows:
Date Accumulated Useful Useful Salvage Salvage
Asset Acquired Cost Depreciation Life (old) Life (new) Value (old) Value (new)
Building 1/1/2002 $800,000 $114,000 40 50 $40,000 $37,000
Warehouse 1/1/2003 100,000 19,000 25 20 5,000 3,600
All assets are depreciated by the straight-line method. Blackburn Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Jerry's proposed changes.
Compute the revised annual depreciation on each asset in 2008.