All assets are depreciated by the straight-line method. Santorini Company uses a calendar year in preparing annual fi nancial statements. After discussion, management has agreed to accept Victor’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.) b. Prepare the entry (or entries) to record depreciation on the building in 2022. 

Instructions 

a. Prepare the journal entry to record depreciation on December 31, 2019. 

b. Prepare the journal entry to record depreciation on December 31, 2020. 

c. Compute the revised annual depreciation on December 31, 2022. 

d. Prepare the journal entry to record depreciation on December 31, 2022. 

e. Compute the balance in Accumulated Depreciation—Equipment for this equipment after depreciation expense has been recorded on December 31, 2022.