Exercise 22-13

Concord Co. purchased equipment for $577,600 which was estimated to have a useful life of 10 years with a salvage value of $10,800 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2018, it is determined that the total estimated life should be 15 years with a salvage value of $5,600 at the end of that time.

(a)		Prepare the entry (if any) to correct the prior years depreciation.
(b)		Prepare the entry to record depreciation for 2018.