Southwest Consulting whose year end is December 31, purchased its only capital asset, a piece of equipment, on January 1, 2012 for $260,000. The estimated residual value was $8,500, and the company decided to depreciate it using the declining balance method at 30%. The company increased the equipment's residual value to $22,000 and decreased the rate of depreciation to 15% in 2014. Both changes are a result of revised expectations about the asset due to its pattern of usage. Additional information Revenue Expenses other than depreciation and tax Loss from discontinued operations before tax Tax rate 2014 $1,600,000 880,000 26,000 35% 2013 $1,470,000 800,000 0 35% Please make sure your final answer(s) are accurate to the nearest whole number. a) Calculate the ending 2014 accumulated depreciation balance. Existing depreciation 2012 2013 Accumulated depreciation, January 1, 2014 Depreciation expense, 2014 Accumulated depreciation, December 31, 2014 b) Record depreciation on December 31, 2014. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). General Journal Page G6 Date Account/Explanation PR Debit Credit c) Record the following comparison of 2013 and 2014 income statements. Enter $0 if not applicable. 2014 2013 Revenue Expenses other than depreciation and tax Depreciation expense Income from continuing operations before tax Income tax expense Income from continuing operations. Loss from discontinued operations, net of tax Net income