Prifzer Co. purchased equipment on January 1, 2015 for $1,000,000.It was estimated to have a useful life of 15 years with a salvage value of $25,000 at the end of that time. Depreciation has been entered for 5 years on a straight-line basis. In 2020, it is determined that the total estimated life should be 10 years with no salvage value at the end of that time.

a)Explain whether the company should now, in 2020, go back and adjust the financial statements from prior years because of this change.Clearly indicate what changes for those years, if any, need to be made.

b) Prepare the entry to record depreciation for 2020.Show all calculations.