Waves Corp., which has a calendar fiscal year, purchased its only depreciable capital asset on 1 January 20X3. Information related to the asset:

In 20X5, Waves decreased the estimated residual value to $30,000, and increased the depreciation rate to 40%. Both changes are the result of experience with the asset and revised expectations about the pattern of usage.
Additional information:

Required:
1. Calculate the ending 20X5 balance of accumulated depreciation, and show the 20X5 entry/entries for depreciation.
2. Provide the condensed comparative statement of comprehensive income for 20X5, including disclosures related to the accounting change.

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Original cost Estimated residual value Depreciation method Depreciation rate $700,000 83,000 Declining balance 25%