On January 3, 2010, Airflow Corporation, a company selling stunt kites, purchased a large number of personal computers. The cost of these computers was $85,000. On the date of purchase, Sandy’s management estimated that the computers would last approximately four years and would have a salvage value at that time of $10,000. The company used the double-declining-balance method to depreciate the computers.

During January 2011, Airflow’s management realized that technological advancements had made the computers virtually obsolete and that they would have to be replaced. Management proposed changing the estimated useful life of the computers to two years.

Instructions:

Prepare the journal entry necessary at the end of 2011 to record depreciation on the computers.