Gundrum Company purchased equipment on January 1, 2015 for $874,600. The equipment was expected to have a useful life of 10 years and a salvage value of $32,000. Gundrum uses the straight-line method of depreciation. At the beginning of 2020, Gundrum determined the total estimated life of the equipment was 13 years and the residual value would be $10,400 at the end of that time.

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 Dec. 31 Depreciation Expense 55,362.50 2 Accumulated Depreciation 55,362.50