A building acquired on January 1, 2014, at a cost of $485,000, has an estimated residual value

Question:

A building acquired on January 1, 2014, at a cost of $485,000, has an estimated residual value of $75,000 and an estimated useful life of 25 years.
(a) Determine the annual straight-line depreciation
(b) Journalize the end-of-year entry to record depreciation.