Burke Copy Center purchased a machine on January 1, 1991, for $180,000 and estimated its useful life and salvage value at ten years and $30,000, respectively. On January 1, 1996, the company added three years to the original useful-life estimate. REQUIRED:

a. Compute the book value of the machine as ofJanuary 1, 1996, assuming Burke recognizes the depreciation using straight-line.

b. Prepare the journal entry to record depreciation entered by the company on December 31, 1996, assuming that Burk uses straight-line.