Quiz CHANGE IN ACCOUNTING ESTIMATE On January 1, 2016 Snowflake Ltd. purchased equipment for $148,000. At that time, the equipment was estimated to have a 10-year useful life with a residual value of $58.000, On December 31, 2020 management determined that 5 years should be added onto the original useful life of the equipment. A recent change in market values also caused management to revise their estimate of the equipment's residual value to $45,000. Snowflake Ltd. uses the cost model with straight line depreciation to account for its capital assets. Prepare the journal entry that is required to correct the prior years depreciation (if any). 7 AB 1 Calculate the amount of depreciation that would be recorded on the equipment for the year ended. December 31, 2020. 7 " B E E % 33