Jerry Grant, the new controller of Blackburn Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2010. His findings are as follows.
Type of Date cost Accumulated Useful Life Salvage Value
- Asset Acquired Depreciation in years
- 1/1/10 old proposed Old Proposed
- Building 1/1/04 $819,200 $117,510 40 50 $35,800 $83,226
- Warehouse 1/1/05 113,040 21,666 25 20 4,710 16,954
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 2010. (Round answers to 0 decimal places, e.g. 125.)
Building $________
Warehouse $_________
Prepare the entry (or entries) to record depreciation on the building in 2010. (Round answers to 0 decimal places, e.g. 125.)
Date Account/Description Debit Credit
Dec. 31 _______________
_______________