Company Three owns a building. The following are the data about the building.

Date Acquired

Cost

Accum Depr

Useful Life in Years

Salvage Value

				Old	Proposed	Old	Proposed
Buildings	1/1/08	$1,600,000	$228,000	40	50	$80,000	$52,000

All assets are depreciated by the straight-line method. Company Three uses a calendar year in preparing annual financial statements. Instructions

(a)	Compute the revised annual depreciation for the building in 2014. (Show computations.) 5 pts

(b)	Prepare the entry (or entries) to record depreciation on the building in 2014. 3 pts