On January 1, 2013, Powell Company purchased machinery that had the following useful life, salvage value, and cost:

Machinery, 10-year estimated useful life, $1,200,000 cost, no salvage value

During 2018, Powell has decided to change the total useful life of the machinery to 8 years, with a salvage value of $60,000 at the end of that time. The machinery is being depreciated using the straight-line method.

Instructions

Prepare the journal entry necessary to record the depreciation expense on the machinery ifor the year 2018.