Machinery purchased for $60,000 by Tom Brady Co. in 32 2010 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that 4 time. Depreciation has been entered for 5 years on this basis. In 2015, it is determined that the total esti mated life should be 10 years with a salvage value of $4,500 at the end of that time. Assume straight-line depreciation.

Instructions:

(a) Prepare the entry to correct the prior years depreciation, if necessary.

(b) Prepare the entry to record depreciation for 2015.

This problem comes from Intermediate Accounting, 15th Edition, 2014 FASB Update, authored by Kieso, Weygandt, and Warfield.