(Depreciation-Change in Estimate)Machinery purchased for $60,000 by Tom Brady Co. in 2003 wasoriginally estimated to have a life of 8 years with a salvage valueof $4,000 at the end of that time. Depreciation has been enteredfor 5 years on this basis. In 2008, it is determined that the totalestimated life should be 10 years with a salvage value of $4,500 atthe end of that time. Assume straight-line depreciation.
Instructions:
1) Prepare the entry to correct the prior years' depreciation, if necessary.
2) Prepare the entry to record depreciation for 2008.