Machinery purchased for \($52\),000 by Carver Co. in 2011 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 2016, 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.

Instructions

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

(b) Prepare the entry to record depreciation for 2016.