Problem 9-13A Revised depreciation-change in life/residual and betterment LO2, 3, 4 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 Blade Date of Depreciation Est. purchase Method* Cost Residual Est. Life Jan. 12/18 SL $ 54,000 $6,000 Jan. 12/18 36,000 4,000 Jan. 12/18 SL 13,800 1,200 $103,800 DDB 15 yrs 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 $12,400 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 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 18 years instead of 15 years and that the residual value should be increased to $9,600. Problem 9-13A Revised depreciation-change in life/residual and betterment LO2, 3, 4 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 Blade Date of Depreciation Est. purchase Method* Cost Residual Est. Life Jan. 12/18 SL $ 54,000 $6,000 Jan. 12/18 36,000 4,000 Jan. 12/18 SL 13,800 1,200 $103,800 DDB 15 yrs 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 $12,400 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 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 18 years instead of 15 years and that the residual value should be increased to $9,600