Question 13 Not complete Mark 0.25 out of 1.25 Flag question Recording Errors and Changes in Estimates On January 1 of Year 1, Zale Company purchased a building for $560,000. The building was estimated to have a useful life of 30 years and no residual value and was depreciated using the straight-line method. At the start of Year 3, the company revised the estimated total useful life to 25 years and adjusted the residual to $7,000. At the start of Year 3, the company discovered that building improvements of $8,400 made at the start of Year 2 were incorrectly expensed as repair expense. Disregard income tax considerations. Required a. Provide the journal on January 1 of Year 3 to record the adjustment for the Year 2 error discovered in Year 3. b. Provide the journal entry on December 31 of Year 3 to record annual depreciation expense. Note: Carry all decimals in calculations; round final answers to the nearest dollar. Date Account Name Dr. Cr. a. Jan. 1, Year 3 Building 8,400 0 Accumulated Depreciation 0 0 Retained Earnings-Prior Period Adjustment 0 0 To record error adjustment. b. Dec. 31, Year 3 Depreciation Expense 0 0 0 0 Check Accumulated Depreciation To record depreciation.