CHAPTER 9 Plant Assets and Depreciation Grain Products uses straight-line depreciation on all its depreciable assets. The accounts justed and closed at the end of each calendar year. On January 4, 1999, the corporation pur machinery for cash at a cost of $80,000. Its useful life was estimated to be 10 years with , ual value of $12,000. Depreciation for partial years is recorded to the nearest full month In 2001, after almost 3 years of experience with the equipment, inanagement decided estimated life of the equipment should be revised from 10 years to 6 years. No change wa in the estimate of residual value. The revised estimate of useful life was decided on prior to ing depreciation for the period ended December 31, 2001. a. Prepare journal entries in chronological order for the above events, beginning with the p of the machinery on January 4, 1999. Show separately the depreciation for 1999, 20 2001. b. What factors may have caused the company to revise its estimate of the equipment" life? ER 9 Plant Assets and Depreciation roducts uses straight-line depreciation on all its depreciable assets. The accounts ara o nd closed at the end of each calendar year. On January 4, 1999, the corporation purchased ery for cash at a cost of $80,000. Its useful life was estimated to be 10 years with a rasid e of $12,000. Depreciation for partial years is recorded to the nearest full month. D01, after almost 3 years of experience with the equipment, imanagement decided that the -d life of the equipment should be revised from 10 years to 6 years. No change was made timate of residual value. The revised estimate of useful life was decided on prior to record. reciation for the period ended December 31, ure journal entries in chronological order for the above events, beginning with the purchase e machinery on January 4, 1999. Show separately the depreciation for 1999, 2000, and 2001. - factors may have caused the company to revise its estimate of the equipment's useful