Book value of building on January 1, 2022 = Cost price - Accumulated depreciation
= 922,000 - 170,400
= $751,600
New depreciable cost = Book value of building on January 1, 2022 - Revised salvage value
= 751,600 - 35,400
= $716,200
Revised annual depreciation = New depreciable cost/Remaining useful life
= 716,200/50
= $14,324
Revised annual depreciation of building = $14,324
Journal
Dec. 31, 2022 | Depreciation expense | $14,324 | |
Accumulated depreciation - Building | $14,324 |
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