(Depreciation Changes) On January 1, 2010, Apartments Plus Company purchased an apartment building and related equipment that have the following useful lives, salvage values, and costs. Building, 25-year estimated useful life, $300,000 salvage value, $2,500,000 cost Equipment, 10-year estimated useful life, no salvage value, $300,000 cost 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. Apartments
Plus also decided to change the total useful life of the equipment to 12 years, with a salvage value of $10,000 at the end of that time. The equipment is depreciated using the straight-line method.
Instructions
Prepare the journal entry(ies) necessary to record the depreciation expense on the building and equipment in 2015.