Oliver Inc. acquired the following assets in January 2017:

Equipment: estimated useful life, 5 years; residual value, $15,000		$470,000
Building: estimated useful life, 30 years; no residual value		$720,000

The equipment was depreciated using the double-declining-balance method for the first three years for financial reporting purposes. In 2020, the company decided to change the method of calculating depreciation for the equipment to the straight-line method, because of a change in the pattern of benefits received (but no change was made in the estimated useful life or residual value). It was also decided to change the buildings total estimated useful life from 30 years to 40 years, with no change in the estimated residual value. The building is depreciated using the straight-line method.

(a) Prepare the journal entry to record depreciation expense for the equipment in 2020. (Ignore tax effects.)

(b) Prepare the adjusting entries.