Jerry Grant, the new controller of Blackburn Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2011. His findings are as follows. Accumulated Useful Life Type Date Depreciation in Years Salvage Value of Asset Acquired Cost 1/1/11 Old Proposed Old Proposed Building 1/1/05 $800,000 $114,000 40 50 $40,000 $37,000 Warehouse 1/1/06 100,000 25,000 25 20 5,000 3,600 All assets are depreciated by the straight-line method. Blackburn Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Jerry's proposed changes.