Using this information:

A company was evaluating its depreciation methods for its equipment. One piece of equipment in particular was now expected to last longer than originally expected. Therefore, the company decided to change the useful life of the asset from 8 to 12 years. While it was originally purchased for $160,000, its salvage value of $4,000 was unchanged from before, as was the method itself (straight-line). The asset had 6 years worth of accumulated depreciation at the start of the current year.

After the new depreciation policy was set, it was discovered while looking through the accounting records that someone had already concluded that this change was necessary before the asset was purchased 6 years ago. As such, the company decided that this needs to be treated as an accounting error, as this change should have been made before the asset was purchased instead of now.

1. Ignoring the impact of taxes, prepare the journal entry or entries related to depreciation that the company would book through the end of the year based on this information. Enter this in the next question below (along with your calculations for the journal entries).
2. In the box below, enter the amount of depreciation expense the company would recognize from the journal entry or entries above