Question

Changes and corrections of depreciationOn January 1, 2008, Klinefelter Company purchased a building for

$520,000. The building had an estimated life of 20 years and an estimated residual value of $20,000. The company has been depreciating the building using straight-line depreciation.

At the beginning of 2014, the following independent situations occur. For each of these situations, prepare all journal entries related to the builring for 2014. Ignore income taxes.

a. The company estimates that the building has a remaining life of 10 years(for a total of 16 years)

______________________         ___________________________

___________________                                               ______________________________

b. The company changes to the sum-of-the -years- digits method. round your answer to the nearest whole dollar.

______________-_________                 ____________________________

__________________________                                                                     ____________________________

c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year.

________________________                    _____________________________

_______________________                                   _______________________________

__________________                                          ___________________________

______________________                                                    ________________________________

Prior period adjustment for error

To record depreciation for 2014 

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