(Change in accounting estimate, LO 7) Refer to the original information about Grindstone Corp. in Exercise 9-3 above. Suppose that early in 2006 Grindstone’s management realized that the fad would last longer than expected and that it would be able to sell 100,000 units in 2006, 50,000 in 2007, and 10,000 in 2008, at which time the machine would be scrapped and Grindstone would receive $1,000.

Required:

Prepare an amortization schedule showing the amortization expense for 2006, 2007, and 2008, and the NBV of the machine at the end of each year.