On January 1, 2008, McElroy Company purchased a building and equipment that have the following useful lives, salvage values, and costs.
Building, 40-year estimated useful life, $52,700 salvage value, $1,242,600 cost
Equipment, 12-year estimated useful life, $12,600 salvage value, $177,600 cost
The building has been depreciated under the double-declining balance method through 2011. In 2012, the company decided to switch to the straight-line method of depreciation. McElroy also decided to change the total useful life of the equipment to 9 years, with a salvage value of $4,100 at the end of that time. The equipment is depreciated using the straight-line method.