On January 1, 2008, Mead Company purchased a building and machinery that have th

Question

On January 1, 2008, Mead Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $5,000,000 cost, $500,000 salvage value Machinery, 10-year estimated useful life, $700,000 cost, no salvage value The building has been depreciated under the straight-line method through 2014. In 2015, the company decided to switch to the double-declining balance method of depreciation for the building. Mead also decided to change the total useful life of the machinery to 8 years, with a salvage value of $35,000 at the end of that time. The machinery is depreciated using the straight-line method Instructions Prepare the journal entry necessary to record the depreciation expense on the building in 2015. Compute depreciation expense on the machinery for 2015.

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