On August 1, 2020, a copper mining company acquired and installed a new rock crusher for $25,000,000. The crusher is used in the mine to aid in the excavation of ore. At the time of installation, management estimates that the crusher will be used for 8 years, help to mine 3 million tons of ore, and have a residual value of $1,000,000. The company has a December 31 fiscal year end.

The mines actual production through 2022 was as follows:

Year Tons of ore mined

2020 150,000

2021 400,000

2022 350,000

1. [ESTIMATE REVISIONS] Refer again to the facts on page Then assume that on January 1, 2023 the mining company management revises its estimate of the crushers residual value to $500,000. They also revise their estimate of the crushers remaining useful life to 10 more years (i.e., from 1/1/2023 to 1/1/2033). What will be the journal entry on December 31, 2023 to record depreciation on the crusher for 2023? (Assume the company uses the straight-line method.)

Response:
account name	amount
account name	amount
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