Machinery purchased for $60,000 cash by Tom Brady Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,000. Tom Brady has been depreciating the machinery on a straight-line basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,500 at the end of that time.

Prepare all journal entries related to the machinery for Tom Brady Co. on the dates listed.

Date	Account	Debit	Credit
01/01/2016
12/31/2016
12/31/2017
12/31/2018
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
12/31/2025

Part 2:

What is the book value of the equipment on January 1, 2023?

$