On November 12, 2009, Griffon Inc. (Griffon) purchased five new forklifts for \($380,000\). Management estimated that the forklifts would have useful lives of 10 years and a residual value of \($60,000\). Near the end of fiscal 2016, management reassessed the useful life of the forklifts and decided that their useful life would probably be about 15 years and the residual value would be about \($25,000\). Griffon’s year-end is October 31 and the company uses straight-line depreciation for this type of asset.

Required:

a. Prepare the journal entry to record the purchase of the forklifts in 2009.

b. What journal entry would be made in 2016 to reflect the change in the estimated useful lives of the forklifts?

c. What would be the depreciation expense for the forklifts in fiscal 2010? Prepare the journal entry to record the depreciation expense.

d. What would be the depreciation expense for the forklifts in fiscal 2018? Prepare the journal entry to record the depreciation expense.

e. Suppose the forklifts were sold in on January 31, 2021 for \($25,000\). Prepare the journal entry to record the sale.