Recording and Reporting a Change in Estimated Useful Life

$($Vear $4$ and Year $5$ are presented$).$ Income before depreciation for Year $4$ and Year $5$ was $$74,700$ and $$79,200,$ respectively. Ignore income tax

Required

a$.$ Prepare the journal entries to be recorded in Year $1$ through Year $4$ for annual depreciation

b$.$ Determine the ending balance in accumulated depreciation on December $31$ of Year $1$ through Year $4.$

c$.$ Prepare the entry to record depreciation expense in Year $5,$ the year of the change.

he change should be reported on the Year $5$ balance sheet and income statement, which are accompanied by

Note: $4$ results for comparative purposes. Include the earnings per share disclosure. Shares of common stock outstanding are $100,000$

b$.$

Accumulated depreciation, December $31,$ Year $4$$$0$

c$.$

d$.$

Less: Accumulated depreciation

Earnings per share Year $4$$

$0$

$0,1$

$0$

$=$

$0=$$

$0=$$

Earnings pershare Year $5$

$01$

$0=$$ $0=$$

Result