Teal Products purchased a machine on January 1, 2014, for $60,200 and estimated its useful life and salvage value at five years and $12,800, respectively. On January 1, 2017, the company added three years to the original useful-life estimate.

(a) Compute the book value of the machine as of January 1, 2017, assuming that Teal uses the straight-line method of depreciation.

(b) Prepare the journal entry entered by the company to record depreciation on December 31, 2017.