At the beginning of 2015, Lindy Weink, the controller of Lafreniere Inc, reviewed the expected useful life and residual value of two of the company's machines and proposed changes as follows:

Useful Life(in years Residual Value

Machine Date Acquired Cost Original Proposed Original Proposed

#1 Jan.1,2005 $800,000 20 25 $40.0000 $62.000

#2 Jan.1,2013 120,000 5 4 5000 3600

a.Calculate the annual depreciation for each asset using the straight-line method and the original useful life and residual value.

b.Calculate the accumulated depreciation and carrying amount of each asset on December 31, 2014

c.If the company accepts Lindy's proposed changes in useful life and residual value, will depreciation expense for each asset in 2015 be higher or lower than depreciation expense in 2014? Explain