Recording a Change in Depreciation Method and Change in Useful Life Texas Inc has made the following two accounting changes in Year 8 to improve its reporting. 1. Equipmlant A is purchased on january 1 of Year 1 for $20,000 (estimated useful Mfe 10 years, residual value $2,400 ) and has been depreciated using the sum of theyeary diges mehod. At the Start of Year 8, management decided to change to straight-line depreciation (with no change in residual value or estimated life) 2. Equipment B is purchased on January 1 of Year 3 for $6,800 (with no resilual valuel and is beng depreciated over its estimated ineful afte of 20 years using the straght-ine method At inf start of Year 8 , manegement decided that the assets useful life would not last longer than 13 years fram the dote of acquisition. Required Prepare the entry on December 31 of Year B to record depreciation for Equipment A and for Equipment B, Note: Carry all decimals in calculations: found final answers to the neared dollar, Eauspent A: Equipment B: Identifying and Recording tmpairment Loss on Equipment Bolt Company purchased equipment on January 1 of Year 1 for $102,000. This equipment has an estimated useful afe of tive years, a residual value of 512,000 , and in deprecatid using the sum of. the-years' digits method, At the beginning of Year 3 . Bolt suspects that the original investment in the asset will not be realzect, the botal remaining future cath infiow expected ro be produced through use of the equipment, including the original residual valoe, is 530,000 . The equipments fair value at january 1 of vear 3 is 521,000 . a. Determine whether the asset is impaired and, if so, the amount of the impairment loss on january 1 of Year 3 i Note: If the asset is not impared, enter a zero (or lesve blank) for the loss. Note: Do not use a negative sign with your answer. b. Compute depredation for Year 3