Robillard Inc. acquired the following assets in January of 2009.
| Equipment, estimated service life, 5 years; salvage value, $13,200 | $479,700 | |
| Building, estimated service life, 30 years; no salvage value | $676,500 |
The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2012, the company
decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or
salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated
salvage value. The building is depreciated on the straight-line method.
(a) Prepare the journal entry to record depreciation expense for the equipment in 2012.
(b) Prepare the journal entry to record depreciation expense for the building in 2012.
(a) Depreciation Expense ???
Accumulated Depreciation – Equipment ???
(b) Depreciation Expense ???
Accumulated Depreciation – Buildings ???
If you could show the work for this problem, that would be great!!
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