On July $1,2022,$ Pharoah Company purchased new equipment for $$89,600.$ Its estimated useful life was $7$ years with a $$11,200$ salvage value. On January $1,2025,$ the company estimated that the equipment's remaining useful life was $10$ years, with a revised salvage value of $$5,600.$

$($a$)$

Your answer is correct.

Prepare the journal entry to record depreciation on December $31,2022.($List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Depreciation Expense

Debit

Credit

Accumulated Depreciation$-$Equipment

Compute the revised annual depreciation on December $31,2025.$

Revised annual depreciation