The December 31, 2023, adjusted trial balance of Biomedics Inc. showed the following information:

¹Remaining useful life 15 years; estimated residual value $60,000. 2 Remaining useful life 6 years; estimated residual value $18,000.

During 2024, a major increase in market demand for building space caused the company to assess the useful life and residual value of the building. It was decided that the useful life would be increased by five years and the residual value increased by $48,000. At the beginning of 2024, it was determined that the remaining estimated life of the equipment should be 10 years and the residual value $6,000. Biomedics calculates depreciation using the straight-line method to the nearest month (round calculations to the nearest whole dollar).

RequiredPrepare the entries to record depreciation on the building and equipment for the year ended December 31, 2024.

Transcribed Image Text:

Building Accumulated depreciation, building ¹ Equipment Accumulated depreciation, equipment² $274,800 134,400 117,600 38,400