Equity Method) Company for $280,000. During the year, Edwards earned net income of $180,000 and paid dividends of $40,000. January 1, 2007, Pennington Corporation purchased 30% of the common shares of Edwards Instructions Prepare the entries for Pennington to record the purchase and any aditional entries related to this investment in Edwards Company in 2007. GENERAL JOURNAL PAGE 1 DEBIT PR. DATE CREDIT DESCRIPTION I-Areadia HS, purchased equipment for S610,000 which was estimated to have a useful life of 20 years with a salvage value of S20,000 at the end of that time. bepreciation has been recorded for 8 years on a straight-line basis. In 2005 (year 9) it is determined that the total estimated life should be 15 years with a salvage value of $7,000 at the end of that time. Questions: What is the journal entry to correct the prior years' depreciation? e Calculate the depreciation expense for 2005. GENERAL JOURNAL PAGE 1 DATE DESCRIPTION DEBIT CREDIT PR. GENERAL JOURNAI PAGE 1 DATE DESCRIPTION PR. DEBIT CREDIT