Stacey Corp has been depreciating equipment over a 10-year life on a straight-line basis. The equipment, which cost $24,000, was purchased on 1 January 20X1. It has an estimated residual value of $6,000. On the basis of experience since acquisition, management has decided in 2005 to depreciate it over a total life of 14 years instead of 10 years, with no change in the estimated residual value The change is to be effective on 1 January 20x5 The 20x5 financial statements are prepared on a comparative basis: 20x4 and 20x5 incomes before depreciation were $49,800 and $52,800, respectively. Disregard income tax considerations. Required: 1-a. Analyze the effects of the change (leave no cells blank - be certain to enter "o" wherever required. Amounts to be deducted should be indicated by a minus sign.) 20X1 20x8 Analysis Cost Accumulated depreciation to date Residual value To be depreciated Annual depreciation (SL) 24.000 $ 2.400 6,000 32.400 5 24 000 1,714 6.000 31,714 $ Per year 2. Prepare the entry, to appropriately reflect the 20x5 depreciation in the accounts for 20X5, the year of the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet