Recording and Explaining Depreciation, Extraordinary Repairs, and Changes in Estimated Useful Life and Residual Value (Straight-Line Depreciation) The records of Luci Company reflected the following details for Machine A at December 31, 2018, the end of the company's fiscal year: During January 2019 , the machine was renovated at a cost of $15,500. As a result, the estimated life increased from five years to eight years and the residual value increased from $4,500 to $6,500. The company uses straight-line depreciation. Required: 1. Prepare the journal entry to record the renovation. 2. How old was the machine at the end of 2018 ? 3. Prepare the adjusting entry at the end of 2019 to record straight-line depreciation for the year. 4. Explain the rationale for your entries in (1) and (3)