Nelson Equipment Manufacturers, Inc. (NEM) reported the net book value of a plant asset at $2,622,000 on January 1 of the current year. There is a $510,000 expected residual value, and the estimated useful life is 25 years. On January 1 of the current year, following 10 full years of depreciation, the company determined that the asset will be useful for only another 10 years and reduced the expected residual value to $180,000. The change in estimate is needed to reflect extended usage and running the factory above normal capacity to meet increased demand. NEM uses the straight-line method of depreciation. The company is subject to a 40% tax rate. Read the requirements. Requirement a. Determine the original cost of NEM's plant asset. The original cost of NEM's plant asset is $ Requirement b. Compute the annual depreciation expense for the first 10 years of the asset's life. The annual depreciation for the first 10 years of the asset's life is $ Requirement c. Prepare the journal entry to record the change in the estimate. (Record debits first, then credits. Exclude explanations from any journal entries.) December 31, Current Year Account