At the beginning of 2011, the controller of Holden Company asked you to prepare correcting entries for the following three situations:

1. Machine X was purchased for $100,000 on January 1, 2006. Straight-line depreciation has been recorded for five years, and the Accumulated Depreciation account has a balance of $45,000. The estimated residual value remains at $10,000, but the service life is now estimated to be one year longer than originally estimated.

2. Machine Y was purchased for $40,000 on January 1, 2009. It had an estimated residual value of $4,000 and an estimated service life of eight years. It has been depreciated under the sum-of-the-years’-digits method for two years. Now, the company has decided to change to the straight-line method.

3. Machine Z was purchased for $80,000 on January 1, 2010. Double-declining-balance depreciation has been recorded for one year. The estimated residual value is $8,000 and the estimated service life is five years. The computation of the depreciation erroneously included the estimated residual value.

Required

Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2011. (Ignore income taxes.)