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Rungano Corporation is a global publisher of magazines, books, and music and video collections and is a leading direct mail marketer. 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 $400,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of the prior year, the press had been depreciated for a full six years. At the beginning of January of the current year, 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 $73,000 would be more realistic. The accounting period ends December 31 Required 1-a. Compute the amount of depreciation expense recorded in the prior year ation 17.500 1-b. Compute the book value of the printing press at the end of the prior year. 260 000 2. Compute the amount of depreciation that should be recorded in the current year. (Round your answer to the nearest dollar amount.) 11,000 3. Prepare the adjusting entry for depreciation at December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answer to the nearest dollar amount.) No Date General Journal Debit Credit December 31 Depreciation expense 11,000 Accumulated d 11,000