waves corp has a calender fiscal year. Purchased its only depreciable asset on 1 jan 2003. Information related to asset is

Cost 700,000

estimated residual value 83000

depreciation method declining balance

depreciation rate 25%.

in 2005 Waves decreased the estimated residual value to 30,000 and increased depreciation rate to 40%. Both changes are the result of experience with the asset and related

expectations about the pattern of usage.

additional Information: 2005 2004

Revenue 3,200,000 2,740,000

Expenses other than depreciation and tax 1,963,000 1,491,000

gain( loss) from discontinued operations 55,000 0

Tax rate 30% 30%

Required:

Calculate the ending 2005 balance of accumulated depreciation and show the 2005 entry/ entries for depreciation

provide the condensed comparative statement of comprehensive income for 2005. including disclosure related to accounting change