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Problem #5: (Effects of Depreciation Change) on January 1, 2010, West Company purchased a building that has an estimated usefulure of 20 yeu, Salvage von $70,000 and a cost of $800,000. The building has been depreciated under the double declining balance methode 2010-2011. In 2012, the company decided to switch to the straight line method of depreciation, Required: Al Prepare a schedule showing the depreciation taken to date (e. calculate the depreciation for 2010 the existing double declining method) 2011 using B] Prepare the journal entry necessary to record the depreciation expense on the building for 2012 (using the new straight-line method, calculated on the new depreciable base and the remaining useful life) Problem 116 (Error Correction and Change in Estimate-Depreciation) Talladega Co. purchased a machine on January 1, 2003, for $880,000. At that time, it was estimated that the machine would have a 10-year life and no salvage value. On December 31, 2017, the firm's account found the entry for depreciation expense had been omitted in 2010 12 year of the se's life). At present the com the sum of the years' digits method for depreciating equipment ignore tax effects: al Record the 2012 lournal entry to correct the Depreciation error: bl Continuing with the problem, management has informed the accountant that the company plans to switch to straht-line depreciation starting with the year 2012. Prepare the general journal entries that should be made December 31, 2012, to record the depreciation for 2012 (Hint: 3 years depreciation was taken ing Sum of Year Digit): 2+ 1 * A .A . Abbcc Aalbo De AaB Normalno S Headi AaBbcc d inga Paragraph Problem #7) Discussion Question- Capital vs Operating Lease: Al list the requirements for a lease to be classified as a Capital Lease Al Discuss the difference in accounting for an Operating Lease and a Capital Lease

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