Brett Richard, the new controller of Maldonado Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2012. Here are his findings:
All assets are depreciated by the straight-line method. Maldonado Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Brett’s proposed changes. (The ?oProposed?? useful life is total life, not remaining life.)
(a) Compute the revised annual depreciation on each asset in 2012. (Show computations.)
(b) Prepare the entry (or entries) to record depreciation on the building in 2012.