In-class exercise 20-1 Change in Accounting Estimates (Prospective) Mobic Inc. acquired some manufacturing equipment in January 2018 for $400,000 and depreciated it $40,000 each year for three years on a straight-line basis. During 2021, the manufacturer announced a new technology for this type of equipment that will make the old models obsolete by the end of 2024 . As a result, Mobic will plan to replace the equipment at that time, effectively reducing the asset's life from ten to seven years. Required: Prepare journal entry for depreciation in 2021