Portfolio & Sons, Inc. purchased equipment on January 1, 2014, at a cost of $500,000. Depreciation was based on an estimated 7-year life and $10,000 estimated residual value. The company uses the straight-line method of depreciation. In 2016, Portfolio & Sons, Inc. revised its depreciation estimate and now believes the equipment will have a total service life of ten years & a residual value of $5,000. Prepare the journal entry to record the 2016 depreciation.