Garrison Company purchased a machine on January 2, 2013. The machine cost $150,000 and had an estimated residual value of $30,000. The estimated useful life of the machine was 8 years. On January 1, 2016, due to technological innovations, the estimated useful life was reduced by 2 years from the original life and the salvage value was changed to $4,000. The company uses the straight-line method. You may ignore taxes.

Prepare the journal entry to record the annual depreciation for the year ended December 31, 2016 and any prior period adjustments which may be necessary.