Revision of Depreciation}

On January 1, 2016, Blizzards-R-Us purchased a snow-blowing machine for \(\$ 73,000\). The machine was expected to have an estimated residual value of \(\$ 5,000\) at the end of its five-year estimated useful life. On January 1, 2018, Blizzards-R-Us concluded that the machine would have a remaining useful life of six years with an estimated residual value of \(\$ 3,800\).

\section*{Required:}

1. Determine the revised annual depreciation expense for 2018 using the straight-line method.

2. CONCEPTUAL CONNECTION How does the revision in depreciation affect BlizzardsR-Us's financial statements?

\section*{Exercise