E 11-22 Change in estimate; useful life and residual value of equipment LO11-22, LO11-52 Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Requirec 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during Page 628 the year 2. Repeat requirement 1 assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method