At the beginning of 2015, Lindy Weink, the controller of Lafrenire Inc., reviewed the expected useful life

At the beginning of 2015, Lindy Weink, the controller of Lafrenière Inc., reviewed the expected useful life and residual value of two of the company's machines and proposed changes as follows:

Instructions
(a) Calculate the annual depreciation for each asset using the straight-line method and the original useful life and residual value.
(b) Calculate the accumulated depreciation and carrying amount of each asset on December 31, 2014.
(c) If the company accepts Lindy's proposed changes in useful life and residual value, will depreciation expense for each asset in 2015 be higher or lower than depreciation expense in 2014? Explain.

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Useful Life (in years) Residual Value Machine Date Acquired #1 #2 Jan. 1, 2005 Jan. 1, 2013 Cost $800,000 120,000 20 25 4 $40,000 $62,000 3,600 5,000