Blue Corp purchased machinery on January 1, 2016 for $692,000. Straight-line depreciation is used. At the time management estimated that the machinery would be used over 10 years and would have a residual value of $47,000. It is now December 31, 2020 and management has determined that the machines life is now a total of 12 years with no residual value. No adjusting journal entries have been recorded yet for the 2020 year-end.

Identify the type of accounting change and the treatment for this change. Correction of a Prior Period Error Change in Accounting Estimate Change in Accounting Policy What journal entries are required to record the above events on December 31, 2020. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit List of Accounts