The Peridot Company purchased machinery on January 2, 2011, for $800,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2011 and 2012. Early in 2013, the company revised the total estimated life of the machinery to eight years.
1. What type of change is this?
2. Briefly describe the accounting treatment for this change.
3. Determine depreciation for 2013.