Thor Corp,'s reported pretax incomes for 2017 and the previous two years as follows: 2016 $150,000 $125,000 $95,000 2017 2015 2017s income was correctly determined after taking into account the following accounting changes and eror corrections made during the year (the errors were made in previous years but were not discovered until 2017). The incomes for 2015 and 2016 do not take these items into account and are stated at the amounts determined at the time. 1. Early in 2017, Thor determined that equipment purchaned in January 2015 for $136,000, with an estimated life of eight years and residual value of $6,000, is now estimated to have a total eleven-year lde (from the date of purchase) but will have only a $1.800 residual value. Thor is using straight-line depreciation for this equipment. 2. Thor discovered that depreciation expense had been understated by $17,000 in 2016, owing to the fact that an adjusting entry for depreciation on machinery was not recorded. 3. On January 1, 2014, Thor bought a piece of machinery for $108.000, with a $12.000 estimated residual value and an eight-year life. At that time, the bookkeeper debited an expense account for this purchase. Thor upes straight line depreciation method. 4. Thor, in reviewing its allowance for doubttful accounts during 2017, has determined that 1% is the appropriate amount of bad debt expense to be recorded. The company had been using 1.5% as its rate in 2016 and 2015 when the expense had been $14,000 and $10,000, respectively. Thor would have recorded $24,000 in bad debt expense for 2017 if they had used the old rate. REQUIRED: Indicate the type of accounting change and prepare the appropriate year-end adjusting entry (entries) that should have been made at December 31, 2017. Ignore income taxes.