Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Date of purchase Jan. 12/18 Depreciation Method* Est. Blade Jan. 12/18 Jan. 12/18 SL SL Cost $ 58,000 38,000 15,000 $111,000 Residual Est.Life $7,000 15 yrs 4,000 1,400 10 yrs 5 yrs *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $12,800 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $2,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 20 years instead of 15 years and that the residual value should be increased to $9,800.