Portland Products purchased a machine on January 1, 1993, for $60,000 and estimated its use¬ ful life and salvage value at five years and $12,000, respectively. On January 1, 1996, the com¬ pany added three years to the original useful-life estimate. REQUIRED:

a. Compute the book value of the machine as ofJanuary 1, 1996, assuming that Portland uses the straight-line method of depreciation.

b. Prepare the journal entry entered by the company to record depreciation on December 31, 1996.