a. On January 1, 2020, Rolling Hills Country Club purchased a new riding mower for £18,000. The mower is expected to have an 8-year life with a £2,000 residual value. What journal entry would Rolling Hills make at December 31, 2020, if it uses straight-line depreciation?

b. Savin NV purchased a piece of equipment for €50,000. It estimated a 5-year life and €2,000 residual value. At the end of year four (before the depreciation adjustment), it estimated the new total life to be 8 years and the new residual value to be €4,000. Compute the revised depreciation.