Rungano Corporation is a global publisher of magazines, books, and music and video collections, and it is one of the world's leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than \(\$ 1\) million. Assume that Rungano owns a Didde press acquired at an original cost of \(\$ 1,200,000\). It is being depreciated on a straight-line basis over a 20 -year estimated useful life and has a \(\$ 150,000\) estimated residual value. At the end of 2012, the press had been depreciated for eight years. In January 2013, a decision was made, on the basis of improved maintenance procedures; that a total estimated useful life of 25 years and a residual value of \(\$ 219,000\) would be more realistic. The fiscal year ends December 31 .

Required:

1. Compute

(a) the amount of depreciation expense recorded in 2012 and

(b) the carrying amount of the printing press at the end of 2012.

2. Compute the amount of depreciation that should be recorded in 2013. Show computations.

3. Prepare the adjusting entry to record depreciation expense at December 31, 2013.