P8-11 Analyzing and Recording Entries Related to a Change in Estimated Life and Residual Value LO8-3 Kano Corporation is a global publisher of magazines, books, and music and video collections and is a leading direct mail marketer. Many direct mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Kano owns a Didde press acquired at an original cost of$390,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $49,000 estimated residual value. At the end of the prior year, the press had been depreciated for a full five years. At the beginning of January of the current year, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $89,000 would be more realistic. The accounting period ends December 31. Required: 1-a. Compute the amount of depreciation expense recorded in the prior year. Depreciation amount 1-b. Compute the book value of the printing press at the end of the prior year. Book value