Jack Reese, the new controller of Muckenthaler Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2010. Here are his findings:

All assets are depreciated by the straight-line method. Muckenthaler Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Jack€™s proposed changes. (The €œProposed€ useful life is total life, not remaining life.)

Instructions
(a) Compute the revised annual depreciation on each asset in 2010. (Show computations.)
(b) Prepare the entry (or entries) to record depreciation on the building in2010.

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Accumulated Useful Life Type of Date Depreciation, (in vears)Salvage Value Acquired Cos Jan. 1, 2010 Old Proposed Old Proposed Building Jan. 1 2002 $900,000 $172,000 40 50 $40,000 $35,000 Warehouse Jan. 1, 2005 120,000 23,000 25 20 5,000 3,600