PearlCompany is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you.

Pearlpurchased equipment on January 2, 2017, for $89,200. At that time, the equipment had an estimated useful life of 10 years with a $5,200salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,100salvage value.

During 2020,Pearlchanged from the double-declining-balance method for its building to the straight-line method. The building originally cost $300,000. It had a useful life of 10 years and a salvage value of $30,000. The following computations present depreciation on both bases for 2018 and 2019.

2019 2020

Straight-line 27000 27000

Double Declining 48000 60000

Pearlpurchased a machine on July 1, 2018, at a cost of $120,000. The machine has a salvage value of $20,000and a useful life of 8 years.Pearl's bookkeeper recorded straight-line depreciation in 2018 and 2019 but failed to consider the salvage value.

Write the journal entries to record depreciation expense for 2020 and correct any errors made to date related to the information provided. Yiu can ignore taxes

Entry 1

Entry 2

Entry 3

(To record current year depreciation)

Entry 4

(To correct prior year depreciation.)