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E 1 0 . 1 1 ( LO 1 ) ( Depreciation - Change in Estimate ) Machinery purchased for $ 6 0 , 0

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E10.11(LO 1)(Depreciation-Change in Estimate) Machinery purchased for $60,000 by Tom Brady Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,500 at the end of that time. Assume straight-line depreciation.
Instructions
a. Prepare the entry to correct the prior years' depreciation, if necessary.
b. Prepare the entry to record depreciation for 2026.
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