On January 1, 2014, the company purchased equipment costing $2,500,000. At that time, Strom estimated that the equipment would have a useful life of 15 years. The company has been depreciating the equipment on a double-declining basis and has already made the journal entries for 2020 based on the original information. However, prior to the end of 2020, management received new information and now wants to revise the total estimated useful life to 10 years in total, thus decreasing the useful life by 5 years. Strom Co. has tentatively calculated net income as $2,200,000 for 2020.

Required:

a) Identify the type of accounting change and the appropriate accounting treatment of its consequences.

b) Prepare any journal entries necessary to record the above events on December 31, 2020, ignoring any tax impacts.