Robillard Inc. acquired the following assets in January of 2009.
Equipment, estimated service life, 5 years; salvage value,
$12,100
$433,150
Building, estimated service life, 30 years; no salvage value
$695,700
The equipment has been depreciated using the sum-of-the-yearsâ-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.
