Exercise 20-16 Accounting change (LO20-4) The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2016 and 2017. Early In 2018, the company revised the total estimated life of the machinery to elght years. Required: 1. What type of change is this? 3. Determine depreciation for 2018. 1. Type of change 3. New annual depreciation