III. Huckleberry Company purchased a machine on January 1, 20x1. 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, 20x3, 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, 20x3.