Recording Entry for a Change in Estimate Exon Company purchased equipment for $40,000 on January 1...

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Recording Entry for a Change in Estimate Exon Company purchased equipment for $40,000 on January 1 of Year 1. The equipment has an estimated residual value of $1,200 and an estimated useful life of 8 years. The company depreciates the equipment using the straight-line method. On January 1 of Year 4, the company determines that the total useful life is 6 years and the estimated residual value is $400. Required Prepare the entry to record depreciation expense for Year 4. Date Dec. 31, Year 4 Account Name Dr. Cr. 0 0 0 0 Recording Entry for a Change in Estimate Exon Company purchased equipment for $40,000 on January 1 of Year 1. The equipment has an estimated residual value of $1,200 and an estimated useful life of 8 years. The company depreciates the equipment using the straight-line method. On January 1 of Year 4, the company determines that the total useful life is 6 years and the estimated residual value is $400. Required Prepare the entry to record depreciation expense for Year 4. Date Dec. 31, Year 4 Account Name Dr. Cr. 0 0 0 0