Thurber Co. purchased equipment for $710,000 which was estimated to have a useful life of 10 years with a residual value of $10,000 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2019, it is determined that the total estimated life should be 15 years with a residual value of $4,000 at the end of that time.
Instructions
a. Prepare the entry (if any) to correct the prior years' depreciation.
b. Prepare the entry to record depreciation for 2019.