Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2010, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2012, Bloomer discovered that the machine would not be useful beyond December 31, 2015, and estimated its value at that time to be $2,000.

Required
1. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2010 to 2015.
2. Was the depreciation recorded in 2010 and 2011 wrong? If so, why was it not corrected?