On January 1, 2014, Ryan Ltd.purchased equipment for $30,000 cash.Ryan Ltd's fiscal year end is December 31.At the time of acquisition, the equipment was expected to last 8 years and had an estimated salvage value of $1,200.Ryan Ltd.uses the straight - line method to depreciate its assets.On January 1, 2015, Ryan Ltd.changed its total estimated useful life of the vehicle from 8 years to 5 years and the estimated salvage value was changed to $2,000.Prepare the journal entry to record the depreciation on December 31, 2015.

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The Answer of On January 1, 2014, Ryan Ltd.purchased equipment for $30,000 cash.Ryan Ltd's fiscal year end is December 31.At the time of acquisition, the equipment was expected to last 8 years and had an estimated salvage value of $1,200.Ryan Ltd.uses the straight - line method to depreciate its assets.On January 1, 2015, Ryan Ltd.changed its total estimated useful life of the vehicle from 8 years to 5 years and the estimated salvage value was changed to $2,000.Prepare the journal entry to record the depreciation on December 31, 2015.