Phillips Corp. purchased $$500,000$ of equipment. The equipment has a $12$ year estimated useful life

and a $$20,000$ salvage value. The company depreciates the equipment on the straight$-$line basis and

recognizes a full year's depreciation in the year of acquisition.

Prepare the journal entry to record the sale of the equipment.

After $10$ years the company estimated they would use the equipment for another $4$ years for

a total of $14$ years. The salvage value is now estimated to be $$12,000.$ What is the amount of

annual depreciation the company will recognize after the change in estimate?