Change in Estimate

Assume that Bloomer Company purchased a new machine on January 1, 2014, for $98,000. The machine has an estimated useful life of nine years and a residual value of $9,800. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2016, Bloomer discovered that the machine would not be useful beyond December 31, 2019, and estimated its value at that time to be $2,400.

Required:

1. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2014 to 2019. If necessary, round any depreciation calculations to the nearest dollar.

Year	Depreciation Expense	Accumulated Depreciation	Book Value
2014	$	$	$
2015	$	$	$
2016	$	$	$
2017	$	$	$
2018	$	$	$
2019	$	$	$

2. Bloomer Company made a- Select your answer -correction of an errorchange in estimateItem 19based on- Select your answer -new informationhistorical informationItem 20. This requires- Select your answer -restating financial statementscorrecting the errorrevising depreciation for future recordingItem 21and the past estimates are considered- Select your answer -wrongcorrect for the past time periodsItem 22since the company used the best information available at that time.