Gundrum Company purchased equipment on January 1, 2012 for $850,000. The equipment was expected to have a useful life of 10 years and a salvage value of $30,000. Gundrum uses the straight-line method of depreciation. At the beginning of 2017, Gundrum determined the total estimated life of the equipment was 13 years and the residual value would be $10,000 at the end of that time.

Required:

Prepare any entry needed in 2017 to account for this change.

Prepare any entry needed in 2017 to account for this change. Record depreciation expense for 2017 on December 31, 2017.

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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