Holtzman Company is in the process of preparing its financial statements for 2017. Assume that no entries for depreciation have been recorded in 2017. The following information related to depreciation of fixed assets is provided to you.
1. Holtzman purchased equipment on January 2, 2014, for $85,000. At that time, the equipment had an estimated useful life of 10 years with a $5,000 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2017, as a re-sult of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,000 salvage value.
2. During 2017, Holtzman changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $300,000. It had a useful life of 10 years and a salvage value of $30,000. The following computations present depreciation on both bases for 2015 and 2016.

3. Holtzman purchased a machine on July 1, 2015, at a cost of $120,000. The machine has a salvage value of $16,000 and a useful life of 8 years. Holtzman's bookkeeper recorded straight-line depreciation in 2015 and 2016 but failed to consider the salvage value.

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Straight-line Declining-balance $27,000 48,000 527,000