Brighton Company purchased a machine on January 1, 2019. The machine had a cost of $410,000 with a $25,000 residual value. The estimated useful life of the machine was 10 years. On January 1, 2021, due to technological innovations, the estimated useful life was reduced by 3 years from the original life and the residual value was reduced by 40%. The company uses straight-line depreciation.

Required:

Prepare the journal entry to record the annual depreciation on December 31, 2021. Please show all work and calculations.