Huckleberry Company purchased a machine on January $1,20$x$1.$ The machine had a cost of $$350,000$ with a $$10,000$ residual value. The estimated useful life of the machine was eight years. On January $1,20$x$3,$ due to technological innovations, the estimated useful life was reduced by two years from the original life and the residual value was reduced by $50\%.$ The company uses straight$-$line depreciation.

Required:

Prepare the journal entry to record the annual depreciation on December $31,20$x$3.$ Please show work and explain process!