Reference no: EM132502349

Victor Mineli, the new controller of Sunland Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022.

Here are his ?ndings: Accumulated "sea" Life (in Type of Date Depreciation, LE) M Asset Acquired Cost Jan. 1, 2022 Old Promd Old Proposed

Building Jan. 1, 2014 $734,500 $135,500 40 58 $57,000 $35,300

Warehouse Jan. 1, 2017 165,500 31,860 25 20 5,200 3,140

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

Question 1: Compute the revised annual depreciation on each asset in 2022. (Round answers to 0 decimal places, 9.9. 125.)

Question 2: Prepare the entry to record depreciation on the building in 2022. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)