Recording Depreciation with a Change in Depreciation Method Pier Exports purchases equipment on January 1 at a cost of $187,500. The company estimates that there will be no salvage value and that the equipment will have a useful life of 10 years. The company elects to use the double-declining-balance method for the first three years, after which the company will change to the straight-line method of depreciation for the equipment. Required a. Compute annual depreciation expense for Year 1 through Year 3. b. Prepare the depreciation entry for the end of Year 4. Note: Round your final answer to the nearest whole number. a. Year Annual depreciation expense Year 1 S Year 2 5 Year 3 S 37,500 30,000 24,000 b. Account Name Dr. 3,428 Date Dec. 31. Year 4 Depreciation Expense Accumulated Depreciation To record depreciation Cr. 0x 3,428 x