Machinery purchased for $52,000 by Carver Co. in 2015 was originally estimated to have a life of 8 years

QUESTION:

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Machinery purchased for $52,000 by Carver Co. in 2015 was originally estimated to have a life of 8 years with a residual value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2020, it is determined that the total estimated life should be 10 years with a residual value of $4,500 at the end of that time. Assume straight-line depreciation.

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Instructions:

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a. Prepare the entry to correct the prior years’ depreciation, if necessary?

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b. Prepare the entry to record depreciation for 2020?

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