In an examination of Arenes Corporation as of December 31, 2012, you have learned that the following situations exist. No entries have been made in the accounting records for these items.

1. The corporation erected its present factory building in 1997. Depreciation was calculated by the straight-line method, using an estimated life of 35 years. Early in 2012, the board of directors conducted a careful survey and estimated that the factory building had a remaining useful life of
25 years as of January 1, 2012.

2. An additional assessment of 2011 income taxes was levied and paid in 2012.

3. When calculating the accrual for officers' salaries at December 31, 2012, it was discovered that the accrual for officers' salaries for December 31, 2011, had been overstated.

4. On December 15, 2012, Arenes Corporation declared a cash dividend on its common stock outstanding, payable February 1, 2013, to the common stockholders of record December 31, 2012.

Instructions

Describe fully how each of the items above should be reported in the financial statements of Arenes Corporation for the year 2012.