Revision of Depreciation

On January $2$ of Year $1,$ Mosler, Inc., purchased equipment for $$136,000.$ The equipment was expected to have a $$13,000$ salvage value at the end of its estimated six$-$

year useful life. Straight$-$line depreciation has been recorded. Before adjusting the accounts for Year $5,$ Mosler decided that the useful life of the equipment should be

extended by two years and the salvage value decreased to $$10,000.$

a$.$ Prepare a journal entry to record depreciation expense on the equipment for Year $5.$ Round your answer to the nearest dollar.

b$.$ What is the book value of the equipment at the end of Year $5($after recording the depreciation expense for Year $5)?$

Book Value at year ended December $31,$ Year $5$: $ $20,500$