Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings:

All assets are depreciated by the straight-line method. Hellickson Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.)

Instructions
a. Compute the revised annual depreciation on each asset in 2022. (Show computations and round to nearest dollar.)
b. Prepare the entry (or entries) to record depreciation on the building in 2022.

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Type of Asset Date Acquired Building Jan. 1, 2016 Warehouse Jan. 1, 2017 Cost $800,000 100,000 Accumulated Depreciation, Jan. 1, 2022 $114,000 19,000 Useful Life (in years) Old Proposed 40 25 50 20 Salvage Value Old Proposed $26,000 6,000 $40,000 5,000